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FastFast MovingMoving
ConsumerConsumer Goods Goods (FMCG)(FMCG)
Report On
Buying Behavior of FMCG Products
Submitted To: Submitted By:
The Authorities, Akanksha SharmaAhmedabad Campus Anil Sharma
Selin GurjarShailesh
UpadhyayHiral Gusai
Ahmedabad Campus
Acknowledgement
We consider our proud privilege to express deep sense of
gratitude to Mr. Himanshu Vaidya for his admirable and
valuable guidance, keen interest, encouragement and
constructive suggestions during the course of the project.
We would also like to express our hearty
gratitude to our faculty guides, Prof. Jaydeep Banerjee
and Mr. Nitesh Khanna of Unitedworld, Ahmedabad for
their valuable guidance and sincere cooperation, which
helped us in completing this Singapore business trip project.
Last, but not the least, we sincerely thank all the
members of our team for their immense support and
assistance extended during the course of this project and in
making it a valuable experience.
From:
Akanksha Sharma Anil Sharma
Selin GurjarShailesh
UpadhyeHiral Gusai
Ahmedabad Campus
Table of Content
1. Executive summary
1-1
2. Introduction
2-3
3. Overview of FMCG
3
4. FMCG in 2006
4
5. Comparison between FMCG in 2005 & 2006
4-5
6. Sector’s outlook
5-7
7. Scope of FMCG
8
8. Growth prospects
8-11
9. Top players in FMCG sector
11
10. Secondary players
12
11. Review of literature
12-14
12. Research objectives
15
13. Research methodology
16-19
14. Analysis
19-60
15. Conclusion
61-62
16. Suggestions & recommendations
63
17. References
64-65
18. Questionnaire
66-68
Executive Summary
In this research the researchers have put an effort to
understand the buying behavior of the consumers towards
Indian FMCG products in Singapore.
1. In this report, the researchers have first of all given a
brief review about FMCG sector as a whole.
2. Then we have given a review of the findings of some
of the researches that has already been conducted by
various researchers.
3. Then we have enumerated our research objectives.
4. Then we have given the panoramic view regarding the
topic.
5. Then we have described our research methodology i.e.,
the sample unit, sample size, sampling region,
sampling procedure that we have used in our report.
6. We have used stratified random sampling as our
sampling procedure.
7. Then we have analyzed the data which was collected
by a questionnaire.
8. Then we have concluded the findings of the survey.
9. Then finally, we have given few suggestions &
recommendations regarding the topic.
Introduction
There was a time when the FMCG companies
ignored Singapore market, they took no any interest to
produced or sell products in Singapore markets except India.
It was the initial stage of FMCG companies in India. As per as
the time had passed, the strategy and marketing style of
FMCG companies had been changed.
The international market is the one of the best opportunity
for the FMCG sector in the India. It is wider for the FMCG. As
the income level of the international consumers increasing,
the demand of FMCG is increasing continuously abroad.
Fast moving consumer goods (FMCG) are popularly named
as consumer packaged goods. Items in this category include
all consumables (other than groceries/pulses) people buy at
regular intervals. The most common in the list are toilet
soaps, detergents, shampoos, tooth paste, shaving products,
shoe polish, packaged food stuff, household accessories,
extends to certain electronic goods. These items are meant
for daily or frequent consumption & have a high return.
A major portion of the monthly budget of each household is
reserved for FMCG products. The volume of products
circulated in the economy against FMCG products is very
high, as the number of products the consumer uses, is
comparatively very high. Competition in FMCG sector is very
high resulting in high pressure on margins.
FMCG companies maintain intense distribution network.
Companies spend a large portion of their budget on
maintaining distribution networks. New entrants who wish to
bring their products in the national level need to invest huge
sums of money on promoting brands. Manufacturing can be
outsourced. A recent phenomenon in the sector was entry of
multinationals and cheaper imports. Also the market is more
pressurized with presence of local players in Singapore
markets.
Overview of FMCG Sector
FMCG is an acronym for Fast Moving Consumer
Goods, which refer to things that we buy from local
supermarkets on daily basis, the things that have high
turnover & are relatively cheaper.
After 4 years of dull performance in both revenues
& profits, FMCG sector has now, i.e., since 2005, gained the
momentum, principally because of the smaller companies
that have substantially improved their market shares at the
cost of larger players, & in some cases, the regional players.
If we carefully observe the FMCG index & BSE index, we
would realize that the returns on money invested in FMCG
index are much lower than the returns in benchmark index.
The FMCG sector has under performed the benchmark BSE
sensex in 2006. Though both the indices were close to each
other till august 2006, however, in the later part of the year
the sensex surpassed the FMCG index by a reasonable
margin.
Comparison of 2006 and 2005 After two years of sinking performance of
FMCG sector, the year 2005 has witnessed the FMCG’s
demand growing. Strong growth was seen across various
segments in FY06. With the rise in disposable income and
the economy in good health, the urban consumers continued
with their shopping spree. The international demand grew at
around 11%, while both the domestic sector registered a
growth of around 8%. Packets and sachets contributed to the
highest growth in Singapore areas. Growth in FMCG
depends on two factors:
Increase in penetration and consumption in Singapore
markets
Change in aspirations and tastes of the urban
population abroad
Both these factors contributed to growth in 2006.
Besides demand, prices also increased, because of which
only the selected consumers moved up in the value chain.
The large format retail stores in metros also stimulated
sales, even if on a very small base. Some companies
absorbed higher input prices, while others were able to pass
on the cost to the consumers.
Sector’s Outlook
FMCG is the fourth largest sector in the Indian Economy with
a total market size of Rs.60,000 crores. FMCG sector
generates 5% of total factory employment in the country and
is creating employment for three million people, especially in
small towns and rural India.
According to a CII – A T Kearney Report, the FMCG sector in
India is expected to grow at a compounded growth rate
(CAGR) of 9% to a size of Rs.1,43,000 crores by 2010 from
Rs. 93,000 crores at present.
With a growth of 52.5%, the BSE FMCG index has, during the
last 1 year outperformed the sensex, which could manage a
growth of 41% only. A well established distribution network,
intense competition between the organized & unorganized
segments, low operating costs, strong branding
characterizes the market.
The large consumer base, particularly in Singapore market,
and the growing middle class open up huge opportunities to
FMCG companies to take the consumers to branded products
and offer new generation products.
The sector's lack-luster performance in the last few years
was due to price competition and increase in raw materials
cost. However, in the FY06, the sector has witnessed a
double-digit growth in profits and revenues. The sector has
registered an up trend in growth across categories, such as
health supplement, shampoo, toothpaste, hair oils, and
mosquito repellant, as shown in table below:
Sales Value Growth %
Categories 2004-2005 2005-2006 Apr.2006-
Sept. 2006
Health Supplement (Chyawanprash)
-5% 0% 23%
Shampoo 10% 23% 19%
Toothpaste 5% 6% 16%
Hair Oils 9% 18% 23%
Mosquito Repellant
13% 10% 29%
Source: CII – A T Kearney Report, (2000)
Sector Financials In millions
31-03-2006 31-03-2005 31-03-2004
Net Sales
Sales Growth
164,196
10.8%
148,241
2.0%
145,380
-
Profit after Tax
PAT Growth
19,595
16.6%
17,001
-24.2%
21,008
-
Market Capitalization
74,746 65,810 63,072
Enterprise Value
662,540 645,477 551,971
Return on Capital Employed (ROCE)
47.1% 51.0% 45.5%
P/E Ratio 26.7% 27.1% 21.0%
Source: CII – A T Kearney Report, (2000)
Scope of the FMCG Sector
The Indian FMCG sector has a market size of US $13.1
billion. FMCG sector is expected to grow by over 60% by
2010. That will translate into an annual growth of 10% over a
period of 5 years. It has been estimated that FMCG sector
will rise from around Rs. 56,500 crores in 2005 to Rs. 92,100
crores in 2010. Hair care, household care, male grooming,
female hygiene, & the chocolates & confectionary categories
are estimated to be the fastest growing segments, says an
HSBC Report. Though the sector witnessed a slower growth
in 2002 – 04, it has been to make a fine recovery since then.
For example, Hindustan Levers Limited (HLL) has shown a
healthy growth in the last quarter. An estimated double-digit
growth over the next few years shows that the good times
are likely to continue.
Growth Prospects
FMCG sector is also likely to benefit from growing demand in
the international market. Because of the low per capita
consumption for almost all the products in the country,
FMCG companies have immense possibilities for growth. And
if the companies are able to change the mindset of the
consumers, i.e. if they are able to take the consumers to
branded products and offer new generation products, they
would be able to generate higher growth in the near future.
It is expected that the international income will rise in 2007,
boosting purchasing power in abroad. However, international
Indian goods consumption accounts for more than 40%
consumption in major FMCG categories such as personal
care, fabric care, and hot beverages. In Singapore, home and
personal care category, including skin care, household care
and feminine hygiene, will keep growing at relatively
attractive rates. Within the foods segment, it is estimated
that processed foods, bakery, and dairy are long-term
growth categories in both domestic and Singapore.
Indian Competitiveness and Comparison with the World
Markets:
The following factors make India a competitive player in
FMCG sector:
1. Availability of raw materials
Because of the diverse agro-climatic conditions in India,
there is a large raw material base suitable for food
processing industries. India is the largest producer of
livestock, milk, sugarcane, coconut, spices and cashew and
is the second largest producer of rice, wheat and fruits
&vegetables. India also produces caustic soda and soda ash,
which are required for the production of soaps and
detergents. The availability of these raw materials gives
India the location advantage.
2. Labor cost comparison
Low cost labor gives India a competitive advantage. India's
labor cost is amongst the lowest in the world, after China &
Indonesia. Low labor costs give the advantage of low cost of
production. Many MNC's have established their plants in
India to outsource for domestic and export markets.
3. Presence across value chain
Indian companies have their presence across the value chain
of FMCG sector, right from the supply of raw materials to
packaged goods in the food-processing sector. This brings
India a more cost competitive advantage. For example, Amul
supplies milk as well as dairy products like cheese, butter,
etc.
Top Players in FMCG Sector
1. Hindustan lever limited (HLL)
2. ITC (Indian Tobacco Company)
3. Nestle India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene & Health Care
10. Marico Industries
Secondary Players
1. Colgate-Palmolive (India) Ltd.
2. Godrej Consumers Product Ltd.
3. Nirma Ltd.
4. Tata Tea Ltd.
5. Parle Agro
6. H. J. Heinz
Review of Literature
International market is one of the best
opportunities for the FMCG sector. In some sense we can say
that international market is future of FMCG.
1. Basu Purba (2004), suggested that the lifestyle of
urban consumers is changing. Urban Indian market and the
marketing strategy have become the latest marketing
buzzword for most of the FMCG majors. She takes into
consideration the study of National Council for Applied
Economic Research (NCAER). According to the NCAER
projections, the number of middle and high-income
households in international area is expected to grow from
140 million to 190 million by 2013. In urban India, the same
is expected to grow from 65 million to 79 million. Thus, the
absolute size of international market is expected to be
double that of urban India.
As per our concern of the research, it is a
detail study of different FMCG products used by international
consumers. It will provide detail information about consumer
preferences towards a good number of FMCG products which
is too unique and different from those previous researches.
Research objectives
To understand the demand pattern of FMCG products in
the international market.
To know the amount of household income spent on the
consumption of FMCG products.
To understand the image of the products in the eyes of
the international consumers.
Research methodology
Data collection
Sample unit:
1. working people (including men & women)
2. college students
3. school students
4. senior citizens
Sample size:
1. working people: 32%
2. college students: 29%
3. school students: 23%
4. senior citizens: 16%
Sampling region:
1. The researchers have selected Singapore, as their area
of study.
2. We have chosen Ang Mo Kio, Little India, Tampines and
Orchard as her areas of research. In these areas she
can easily meet working people (both male & female),
school students, college students & senior citizens.
Sampling procedure:
The researcher will take stratified random sampling as
the sampling procedure.
Data collection method:
1. Primary data: it will be collected with the help
of a self administered questionnaire. This questionnaire
aims to gather information related to various Branded
products.
2. Secondary data: it will be collected with the
help of books, research papers, magazines, news
papers, journals, internet, etc.
Research instruments:
Questionnaire design:
As the questionnaire is self administrated one, the survey is
kept simple and user friendly. Words used in questionnaire
are readily understandable to all respondent. Also technical
jargons are avoided to ensure that there is no confusion for
respondents.
Analysis(Considering only the buyers
buying Indian Origin Goods And Data comprising only of Indian
goods.)
1. Which soap u prefer to use?
The reaction of people towards various Indian SOAP
brands can be tabulated in the following manner:
Brands Lux Dettol Lifebuoy others
Percenta
ge36 22 18 24
In the survey that the researcher conducted, it
could easily be concluded that LUX, the product of HUL was
highly in demand. LUX, the product of HUL covers 36% of the
market share. After LUX, the other brands (EXCEPT LUX,
DETTOL, LIFEBUOY) covers 24% of the market share. This is
then followed by DETTOL, the product of RECKITT
BENCKISER with a market share of 22%, which is then
followed by LIFEBUOY, the product of HUL with a market
share of 18%.
This data can be graphically explained with the help of the following bar graph:
0
5
10
15
20
25
30
35
40
percentage
brands
demand of soap brands
lux
dettol
lifebuoy
others
2. Which pack u prefer to use? In order to determine the income pattern of the
consumers, it was necessary for the researcher to
distribute the consumers on the basis of their demand for
the various packs of SOAP brands available in the market.
However, the reaction of people towards various
packs of SOAP can be tabulated in the following manner:
Packs of soaps Single packFamily pack (3 in
1)
Percentage 56 44
In the survey that the researchers conducted,
they tried to differentiate amongst people, with below
average household income, average household income &
above household income. This classification can be done
on the basis of the daily expenditure that people make.
56% consumers demand single pack. 44% consumers
demand family packs i.e. 3 in 1 pack.
This data can be graphically explained with the help
of the following bar graph:
0
10
20
30
40
50
60
percentage
packs preferred bycustomers
demand of packs of soap
single pack
family pack ( 3 in 1 )
1. Which tea u prefer to use?
The reaction of people towards various TEA brands can
be tabulated in the following manner:
Brands Tata TeaBrooke
BondTaj Mahal Others
Percenta
ge32 28 18 22
In the survey that the researchers conducted, it
could easily be concluded that TATA TEA, the product of
TATA has a market share of 32%. This is followed by,
BROOKE BOND, with a market share of 28%. Followed by
other brands (EXCEPT TATA TEA, BROOKE BOND, TAJ MAHAL)
with a market share of 22%. This is finally followed by TAJ
MAHAL, the product of HUL which holds18% of the market
share.
This data can be graphically explained with the help of the following bar graph:
0
5
10
15
20
25
30
35
percentage
brands
demand of tea brands
tata tea
brooke bond
taj mahal
others
2. Which tea pack u prefer to use?
In order to determine the income pattern of the
consumers, it was necessary for the researchers to
distribute the consumers on the basis of their demand for
the various packs of TEA brands available in the market.
However, the reaction of people towards various TEA
packs can be tabulated in the following manner:
TEA packs SachetMedium
packLarge pack
percentage 48 32 20
In the survey that the researcher conducted,
she tried to differentiate amongst the people, with below
average household income, average household income &
above household income. This classification can be done
on the basis of the daily expenditure that people make.
However, it can be concluded that sachets are most
commonly used by the people .i.e., 48% consumers
demand sachet packs. 32% consumers demand medium
pack.20% consumers demand large pack.
This data can be graphically explained with the
help of the following diagram:
0
10
20
30
40
50
percentage
packs preferred by customers
demand of tea packs
sachet
medium pack
large pack
3. Which tooth paste u prefer to use?
However, the reaction of people towards various
TOOTH PASTES can be tabulated as follows:
BrandsPepsoden
tColgate Close Up Others
Percenta
ge27 35 22 16
In the survey that the researcher conducted, it could
easily be seen that COLGATE, the product of COLGATE
PALMOLIVE is the market leader, which covers 35% of the
total market. After that, PEPSODENT, the product of HUL is
demanded by the customers, which covers 27% of the
market share. Followed by CLOSE – UP, the product of HUL
is demanded by the customers, which covers 22% of the
market share. Which is then followed by others brands
(EXCEPT PEPSODENT, COLGATE, CLOSE - UP), which
covers 16% of the total market share.
This data can be graphically explained with the
help of the following bar graph:
0
5
10
15
20
25
30
35
percentage
brands
demand of tooth paste
pepsodent
colgate
close up
others
4. Which pack u prefer to use?
In order to determine the income pattern of the
consumers, it was necessary for the researcher to
distribute the consumers on the basis of their demand for
the various packs of TOOTH PASTE brands available in the
market.
However, the reaction of people towards various
TOOTH PASTE packs can be tabulated in the following
manner:
Tooth paste
packSmall pack
Medium
packFamily pack
Percentage 34 48 18
In the survey that the researcher conducted, she
tried to differentiate amongst the people, with below
average household income, average household income &
above household income. This classification can be done on
the basis of the daily expenditure that people make.
However, it can be concluded that 34% consumers demand
small packs. 48% consumers demand medium packs. 18%
consumers demand large pack.
This data can be graphically explained with the help
of the following graph:
0
10
20
30
40
50
percentage
packs preferred by customers
demand of packs of tooth paste
small pack
medium pack
family pack
5. Which detergent u prefer to use?
The reaction of people towards various DETERGENT
brands can be tabulated in the following manner:
Brands Surf Rin Tide Others
Percenta
ge27 35 22 16
In the survey that the researcher conducted, it
could be easily concluded that RIN, the product of HUL
captures 35% of the total market share. This is followed
by SURF, the product of HUL which has a market share of
27%. This is followed by TIDE, the product of PROCTER &
GAMBLE which has a market share of 27%. This is finally
followed by other brands (EXCEPT SURF, RIN, TIDE) which
captures 16% of the market share.
This data can be graphically explained with the
help of the following bar graph:
0
5
10
15
20
25
30
35
percentage
brands
demand of detergents
surf
rin
tide
others
6. Which pack u prefer to use?
In order to determine the income pattern of the
consumers, it was necessary for the researcher to
distribute the consumers on the basis of their demand for
the various packs of DETERGENT brands available in the
market.
However, the reaction of people towards various
DETERGENT packs can be tabulated in the following
manner:
Detergent
packsSachet
Medium
packFamily pack
Percentage 43 27 30
In the survey that the researcher conducted, she
tried to differentiate amongst the people, with below
average household income, average household income &
above household income. This classification can be done on
the basis of the daily expenditure that people make.
However, 43% consumers demand sachet packs. 30%
consumers demand family packs. 27% consumers demand
medium packs.
This data can be graphically explained with the
help of the following bar graph:
05
1015202530354045
percentage
packs preferred by customers
demand of detergent packs
sachet
medium pack
family pack
7. Which shampoo u prefer to use?
The reaction of people towards various SHAMPOO
brands can be tabulated in the following manner:
BrandsClinic
plusSunsilk
Head &
shouldersOthers
Percenta
ge33 25 28 14
In the survey, that the researcher conducted it
can easily be concluded that CLINIC PLUS, the product of
HUL, captures the major portion of the market with a market
share of 33%. This is followed by HEAD & SHOULDERS, the
product of PROCTER & GAMBLE which holds 28% of the
market share. This is followed by SUNSILK, the product of
HUL which holds 25% of the market share. Finally followed
by other brands (EXCEPT CLINIC PLUS, SUNSILK, HEAD &
SHOULDERS) with a market share of 14%.
This data can be graphically explained with the help of the
following bar graph:
0
5
10
15
20
25
30
35
percentage
brands
demand of shampoo
clinic plus
sunsilk
head & shoulders
others
8. Which pack u prefer to use?
In order to determine the income pattern of the
consumers, it was necessary for the researcher to
distribute the consumers on the basis of their demand for
the various packs of SHAMPOO brands available in the
market.
However, the reaction of people towards various
SHAMPOO packs can be tabulated in the following manner:
Shampoo
packssachet
Small
pack
Medium
pack
Family
pack
Percenta
ge23 32 28 17
In the survey that the researcher conducted, she
tried to differentiate amongst the people, with below
average household income, average household income &
above household income. This classification can be done on
the basis of the daily expenditure that people make.
However, 32% consumers demand SMALL PACK. 28%
consumers demand medium pack. 17% consumers demand
large packs.
This data can be graphically explained with the
help of the following bar graph:
0
5
10
15
20
25
30
35
percentage
packs preferred by customers
demand of shampoo packs
sachet
small pack
medium pack
large pack
9. Which biscuits u prefer to use?
The reaction of people towards various BISCUITS brands can
be tabulated in the following manner:
BrandsMarie
goldGood Day Parle G Others
Percenta
ge24 38 21 17
In the survey, that the researcher conducted, it can
easily be concluded that GOOD DAY, the product of
BRITANNIA holds a major market share of 38%. This is
followed by MARIE GOLD, another product of BRITANNIA
which holds 24% of the market share. After that, PARLE- G,
the product of PARLE, holds 21% of the market share. This is
followed by other brands (EXCEPT MARIE GOLD, GOOD DAY,
PARLE- G) which hold a market share of 17%.
This data can be graphically explained with the help of the
following bar graph:
0
5
10
15
20
25
30
35
40
percentage
brands
demand of biscuits
marie gold
good day
parle G
others
10. which hair oil u prefer to use?
The reaction of people towards various HAIR OIL brands can
be tabulated in the following manner:
BrandsParachut
e
Dabur
Amla
Dabur
VatikaOthers
Percenta
ge37 29 19 15
In the survey, that the researcher conducted, it can
easily be concluded that PARACHUTE, the product of MERICO
captures 37% of the total market share. This is followed by
DABUR AMLA, the product of DABUR which captures 29% of
the total market share. This is followed by DABUR VATIKA,
another product of DABUR which captures 19% of the
market. And after that, followed by other brands (EXCEPT
PARACHUTE, DABUR AMLA, DABUR VATIKA) captures 15% of
the market share.
This data can be graphically explained with the help of
the following bar graph:
0
5
10
15
20
25
30
35
40
percentage
brands
demand of hair oil
parachute
dabur amla
dabur vatika
others
11. Which pack u prefer to use?
In order to determine the income pattern of
the consumers, it was necessary for the researcher to
distribute the consumers on the basis of their demand for
the various packs of HAIR OIL brands available in the
market.
However, the reaction of people towards
various HAIR OIL packs can be tabulated in the following
manner:
Hair oil
packs
Small pack Medium
pack
Large pack
Percentage 32 41 27
In the survey that the researcher conducted, she
tried to differentiate amongst the people, with below
average household income, average household income &
above household income. This classification can be done on
the basis of the daily expenditure that people make.
However, 41% consumers demand medium packs. After
that, 32% consumers demand small pack. 27% consumers
demand large packs.
This data can be graphically explained with the help of the
following bar graph:
05
1015202530354045
percentage
packs preferred by customers
demand of packs of hair oil
small pack
medium pack
large pack
12. Which cream u prefer to use?
The reaction of people towards various CREAM brands can
be tabulated in the following manner:
Brands Pond’sFair &
lovelyAyur Others
Percenta
ge28 32 14 26
In the survey, that I conducted, it can easily be
concluded that FAIR & LOVELY, the product of HUL, holds the
major market with a share of 32%. This is followed by,
POND’s, another product of HUL, which holds 28% of the
market share. This is followed by, other brands (EXCEPT,
POND’s, FAIR & LOVELY & AYUR), which captures 26% of the
market share. This is followed by AYUR, the brand of AYUR
ACADEMY OF NATURAL BEAUTY (AANB) which holds 14% of
the total market share.
This data can be graphically explained with the
help of the following bar graph:
0
5
10
15
20
25
30
35
percentage
brands
demand of creams
ponds
fair & lovely
ayur
others
13. Which coffee u prefer to use?
The reaction of people towards various COFFEE brands can
be tabulated in the following manner:
Brands Bru Nestle Nescafe Others
Percenta
ge26 32 32 10
In the survey, that the researcher conducted, it can
be easily concluded that all the brands are facing tough
competition. NESTLE, the product of NESTLE S.A. &
NESCAFE, another product of NESTLE S.A., shares equal
market share of 32% each. This means that they are in a
very tough competition. This is followed by BRU, the product
of HUL which holds, 26% of the market share. While the
other brands hold only 10% of the market share.
This data can be graphically explained with the
help of the following bar graph:
0
5
10
15
20
25
30
35
percenatge
brands
demand of coffee
bru
nestle
nescafe
others
Conclusions
In this report, it can very easily be
concluded that HUL, holds major portion of the FMCG
market. It holds major shares in the soap, detergent,
shampoo & cream’s category. HUL’s products are mainly in
demand, because they provide these products in different
packs.. So, they prefer buying the small or the medium
packs. However, large or family packs are still been bought
by few consumers, who are from a well – off families.
In the case of TEA, TATA holds a major share. In
the case of COFFEE, NESTLE & NESCAFE holds the major
share. Rural consumers favor TATA because it is an old
organization & it has gained a lot of BRAND EQUITY which
finally creates BRAND LOYALTY. In these products,
consumers do get brand loyal, because they do not want to
take a risk with their tastes. So they prefer sticking to one
brand. These organizations supply their products in various
packs (small, medium & large), considering the buying
capacity of their consumers.
As in the case of BISCUITS, BRITANNIA holds
the major market share. Rural consumers favor BRITANNIA
because it is an old organization & it has gained a lot of
BRAND EQUITY which finally creates BRAND LOYALTY. In
case of BISCUITS, consumers do get brand loyal, because
they do not want to take a risk with their tastes. So they
prefer sticking to one brand. These organizations supply
their products in various packs (small, medium & large),
considering the buying capacity of their consumers.
In the case of TOOTH PASTES, COLGATE
PALMOLIVE holds a major market share. Consumers are very
concerned about their health, so if any product suits them
they prefer sticking to that product. And this product is also
available in various packs, so various consumers can use it
according to their buying capacity.
In the case of HAIR OILS, MERICO holds the
major market share. MERICO is a much known organization
& its product PARACHUTE has reached all the places. So it is
a known product, which has created a good amount of
goodwill for the organization. Consumers have confidence &
trust in their product. Therefore, they prefer buying it.
Suggestions & recommendationsThe researchers would like to suggest the following points,
so that the organizations can easily sell their products to
their consumers:
1. However, the demand of a product is also affected by
its life cycle. If the product is in the introduction stage,
then it will definitely take some time to capture the
market, because in the introduction stage, consumers
are not much aware about the product. Therefore, it’s
the responsibility of the organization to create
awareness amongst the consumers.
2. They should adapt rigorous marketing strategies, in
order to sustain in the market.
3. There is immense competition in this sector. Therefore,
the organizations should try to gain competitive
advantage against their competitor’s.
4. They should try to reach as many people as possible.
5. For the organizations that are not much popular
amongst the consumers, should adopt Sales Promotion,
as their marketing strategies.
6. Application of 4A’s has also become an important task
for all the organizations.
(*4A= Availability, Affordability, Acceptability,
Awareness)
References
1. Kearney, A T, CII – Report, (2000)
2. Center for Monitoring Indian Economy (CMIE)
3. Statistical Outline of India (2001-02), NCAER
4. National Council of Applied Economic Research (NCAER)
5. Indian readership survey (IRS)
6. http://www.upgov.nic.in/upinfo/census01/cen01-1.htm
7.Lucknow Development Authority
8.http://www.naukrihub.com/india/fmcg/overview/
9.http://en.wikipedia.org/wiki/Fast_moving_consumer_goods
10. *4A= Availability, Affordability, Acceptability, Awareness
Questionnaire
1. name:2. occupation:3. monthly salary:4. address:5. phone no.:
6. which soap u prefer to use?a. Luxb. dettolc. lifebuoyd. others
7. which pack u prefer to use?a. single b. family pack ( 3 in 1)
8. which tea u prefer to use?a. tata teab. brooke bondc. taj mahald. others
9. which pack u prefer to use?a. sachetb. medium packc. large pack
10. which tooth paste u prefer to use?a. pepsodentb. colgatec. close – upd. others
11. which pack u prefer to use?a. small pack b. medium pack c. family pack
12. which detergent u prefer to use?a. surfb. rinc. tided. others
13. which pack u prefer to use?a. sachetb. medium pack c. large pack
14. which shampoo u prefer to use?
a. clinic plusb. sunsilkc. head & shouldersd. others
15. which pack u prefer to use?a. sachetb. small pack c. medium pack d. large pack
16. which biscuits u prefer to use?a. marie goldb. good dayc. parle - Gd. others
17. which hair oil u prefer to use?a. parachuteb. dabur amla c. dabur vatikad. others
18. which pack u prefer to use?a. small pack b. medium pack c. large pack
19. which cream u prefer to use?a. pondsb. fair & lovelyc. ayurd. others
20. which coffee u prefer to use?
a. brub. nestle c. Nescafed. others