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A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 241
Chapter No: 06 Summary of findings &
Conclusion:
6.01 Introduction:
6.02 Summary:
6.03 Findings:
6.04 Conclusion:
6.05 Testing of Hypothesis:
6.06 Suggestion:
6.07 Further Scope of Research:
6.08 Managerial Implication:
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 242
6.01 Introduction: The Indian FMCG sector is the fourth largest sector in the economy
with a total market size of Rs 167,100 Crores. The market is estimated to
grow to US$100 billion by 2025, According to market research Firm
Nielsen. It has a strong MNC presence and is characterized by a well-
established distribution network, intense competition between the
organized and unorganized segments and low operational cost.
Availability of key raw materials, cheaper labour costs and presence
across the entire value chain gives India a competitive advantage. Also,
increase in the urban population, along with increase in income levels and
the availability of new categories, would help the urban areas maintain
their position in terms of consumption. At present, rural mindset is open
to consumption of newer, more contemporary food categories and as a
result, drives consistent growth. Rural India accounts for more than 700
Million consumers or 70 percent of the Indian population and account for
40 percent of the total FMCG Market.
The Indian rural Market is a large market space with very low
organized player Penetration. Across the globe, the Indian rural market is
probably the single largest “unit “of opportunity. Family income is one of
the variables which should be considered while designing the strategies.
There is significant difference between consumer preference and product
utilization. It is found that consumer deal proneness differs according to
marital status. Furthermore, it is also proved that married are more deal
prone compare to unmarried. Added to it brand equity perception differs
according to employment categories and attitude of costumer towards
brand. Overall, on international brand with scheme are Preferred.
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 243
6.02 Summary:
In the First chapter Introduction is made about brand its success
and development stages of Branding strategies through different Figures
and charts .Concentration is made on strength weakness, Opportunities
and threats of Indian FMCG in personal care through strategic objectives
and strategic effectiveness is studied.
Second chapter is concerned with a literature review of Branding
strategies of Both Indian as well as Multinational Internal and external
Analysis is studied some Alternative Analysis is also done. Focus is given
on managing a brand overtime of reinforcing Brand. Studied the effect of
Indian as well as Multinational Brand Personal care FMCG. Further
studied the Advertising impact on FMCG for sustainability.
The Third Chapter Research methodology where primary data is
collected through Questionnaire method for different Hypothesis to be
tested, Where research is designed for sampling Purpose Three Indian
Nirma ,Godrej and Marico as well as three Multinational Brand -Colgate
& Palmolive Ltd,Reckist Benckiser and Hindustan Unilever Ltd,is
considered for the purpose of study.
In Fourth Chapter Branding strategies in India are studied, Growth
of FMCG, Brand equity Perception and Frame work of Aaker equity is
studied. The review of five district of Maharashtra under study is
Aurangabad, Jalna Parbhani Nasik, and Ahmednagar is studied to know
the geographical area and it’s Importance for research purpose.
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 244
The universe of the study consists of all FMCG consumers in the
state of Maharashtra with sample size of 500 from Above district. The
convenient sampling Method is used for the purpose of study .The period
of the study is from 2010 to 2014 only.
While studying the primary data it was found that Indian people
are aware of FMCG in personal care. The marketing strategies of
multinational are effective than Indian FMCG in personal care. While
line extension and Brand extension are effective than new brand
strategies. The Chi-square test is used here to test the Hypothesis.
It is also seen that Indian consumer is scattered and many a time’s
different Ayurvedic Product Herbs or local Brands are used for personal
care FMCG traditionally in India. In Aurangabad it is seen that
Hindustan Lever ltd has a greater penetration than that of Indian Personal
care FMCG Godrej & Marico. The local brand and Ayurvedic also has an
impact on customer due to mouth Publicity and Advertise through local
Newspaper. While studying throughout Maharashtra it was found that
though Multinational companies had a greater penetration through brand
extension and line extension.
The Indian personal care FMCG companies though started late but
are sustaining In Indian market through different strategies of brand
extension, new Innovation and also through line extension. The research
can be further studied both quantatively and qualitatively in coming years
in Indian personal care FMCG .Also the emerging Ayurvedic Products
and customers loyalty towards brands . As purchasing power of Rural as
well as urban is increasing at rate of 17 percent per year. As people are
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 245
becoming more concern about their Health & Hygiene factors. As it
prevents the various epidemic diseases and thus increase the standard of
living of Indians.
6.03 Findings:
All samples 500 Number of Respondent were authentic Collected from
Five District of Maharashtra it was found that 51 percent were in the age
above 31 and 43percent were in age group of 21 to 30 Years.
Gender purpose both male and female is equally considered.
Occupational status the Employed were 150 respondents highest then
Professionals, student and housewife later. Out of the 500 respondent 26
percent were Professional and 30 percent were Employed in various
organizations.
The Educational background of 218 respondent highest are under
graduates. The 80 percent respondent were Qualified cumulatively and
43.6 percent were under graduate.
The family size statistics shows that there is nuclear family where number
of member in family is up to 4 of 250 respondents.
Marital status found was unmarried greater than married.
It was found that maximum respondent up to 230 use mix brand of
personal care FMCG. When we consider of liking brands it was found
that there is a mix response from respondents 48 percent highest as in
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 246
some brand multinational has a greater penetration than that of Indian
brands. Comparatively Indian brand liking is 26 percent higher than that
of Multinational which is 20 percent.
It was found that maximum 300 respondents use Kirana shop as
preference of purchasing than that of 120 in malls. It was found that
almost 60 percent respondent were comfortable in purchasing products
from Kirana stores as it found them friendly and easy reachable.
It is found that majority Reason for selecting Hair oil Brand by
Multinational and National brand user consumer during respondents are
enhance texture and quality, strengthen the structured damaged hair. We
see here that Multinational HUL has greater penetration than that of
Indian Marico in Hair oil they have different brands like sunsilk and
Dove with extended one as proved ahead. While in other product like
Shampoo, Skin care, Hand wash and Soap Multinational are ahead of
Indians brands as they are new in some cases.
Here we found that the reason for loyalty of consumer is seen major
towards Multinational Brand of HUL and CP(I) Ltd in all products as
Indian personal products are either new or people are not loyal more than
one year except in the case of Marico Hair oil .
Here we found that the awareness of consumer is major through
Advertisement & mouth publicity compare less towards reference group
Dermatologist and Doctor.
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 247
Reasons for major selecting different product by consumer during
respondent.
Table No: 6.01 Reasons for Major selecting different product by
consumer during Respondent
Product
Reason for selecting
Shampoo
The shampoo by consumer is majorly hair fall
Control and Nutritive Solution.
Hand wash
Hand wash by consumer is Oil clear Pure & gentle
and color Changing rest is there for penetrating in
market deep segment wise.
Soap
The soap is selected majorly by consumer to
Enriched with Natural Extract & Beautiful Florala’s
also sensitive to Skin.
Skin Care
Majorly for Touchable smooth to skin.
Hair oil
Affordable and Ayurvedic
The consumer selects the Hand wash soap Skin care because they
fill that it keeps them healthy and nourished.
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 248
The development of FMCG Market in Maharashtra is facilitated by
the economic viability of the State. It is one of the richest states of
India with one of the highest per capita income .So there is a gap of
huge demand and supply of Personal care Brand in FMCG.
The developing cities of Maharashtra have been one of the important
driving forces for the development of FMCG market and Mall
Concept and Brand culture helps to grow Personal Care FMCG sector.
It is found that there is substantial increase in the rate of
Consumerism in Maharashtra in recent years and such that the trend is
still growing with the increase in income.
It was unfortunate that very few respondents had awareness about
different consumer protection Acts and also whoever knew it was
difficult to recall which had became again a serious concern for the
marketers.
While the rural market certainly offers a big attraction to the
marketers, it would be naïve to think that any company can enter the
market without facing any barriers and walk away with a sizeable
share.
Distribution is the most important variable in the marketing plans of
most consumer goods manufacturers, because managing such a
massive sales and distribution network is in itself a huge task.
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 249
The wholesaler is the most important source of information for the
retailer. Also it has most influence on the retailer. The marketer would
try their best to motivate the wholesaler to get the retailer in the rural
market to stock his company’s products, particular the newer products
either by dumping for penetration in the Market.
FMCG shopping is still dominated by male in both urban and rural
area.
There are some unorganized distribution channels in the rural markets
i.e. Mandi and weekly markets. These can be studied to analyze their
impact on sales of branded products.
Most of the rural customer could know differentiate between original
and duplicate brands so they switched over to other brands if duplicate
ones were found.
For decades, foods items have been the most widely distributed
FMCG products in the country. But the rule of thumb is changing
Indians are more likely to find more personal care products than food
in a shop.
Major unbranded customer are shifting towards Branded one due to its
easy availability and affordable price at the nearest Kirana shop or
departmental stores.
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 250
6.04 Testing of Hypothesis:
Testing of The hypothesis by Chi- square Test at 5 percent level of
significance:
Table No: 6.02 Hypothesis testing 5 percent Level:
Sr No
Hypothesis Ho
Accepted/
Rejected
Type of
Error
First People are not aware of Branded
Indian FMCG In personal care
Rejected I
Second A new Brand strategy is effective
than line extension
Rejected I
Third
A new Brand strategy is effective
than Brand Extension.
Rejected I
Hair oil Multinational
Hindustan Unilever Ltd (HUL)
Accepted II
Hair oil National
Marico
Rejected I
Shampoo
Multinational
Rejected I
Hand wash Multinational Rejected I
Fourth The Marketing strategy of Indian
brand FMCG in personal care are
effective than Multinational FMCG
Rejected I
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 251
6.05 Conclusion:
It is concluded that Multinational Brands are penetrated more than
that of Indian Brand in personal care FMCG.
The Branding strategies of multinational are effective than that of
Indian brands of Personal care FMCG in Maharashtra state.
The Indian customer is aware of the product of Personal care
FMCG.
The multinational brand is having advantage of exposure of
Multinational market.
The Indian Brand has old Technology than that of Multinational
Brands for production and as a result the production cost goes high
and profit decreases overall.
The Advertising effect of Multinational are more effective and
result oriented than that of Indian Brand in personal care FMCG as
they can afford celebrities both local as well as National. They can
sustain for longer time as they have variety of product with
segmentation and special premium brand required for penetration
among different class and customer of different income group.
It is concluded that the customer are aware of the product regarding
its Hygiene Factors but not ready to compromise on price level.
That’s why many Indian Personal care FMCG like Nirma, who
produces soap and diversify its business further into Hand wash,
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 252
Hair oil, skin Care but could not success fail due to its having a
brand of producing Detergent powder at low affordable cost. So
people also accept the other products in same Brand at affordable
price which they cannot afford.
The sustainable strategy is being develop by some Indian Personal
care FMCG Like Marico By having Farmers participation in the
production of coconut at Kerala which is major raw material for
Hair oil Product.
The Indian personal care FMCG should revised its product under
different strategies to sustain and increased its market share by
Innovation in different production; Marketing strategies compare to
Multinational and try to catch the wave of customer mind.
It is concluded that Indian Customer loyalty in personal care
FMCG difficult to change as frequently change as in western
countries due to the exposure of Multinational Market. As we see
the parachute of Marico is penetrated is trusted by Generation to
generation. Similarly In the soap Multinational HUL is trusted
from generation to generation.
The buying behavior of Consumer is changing especially rural
areas as their purchasing power is increasing due to change in
Income level and literacy.
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 253
The Investment by Indian personal care FMCG is increasing after
2010 as special central as well state incentives are given to them to
sustain in Indian market.
The contract manufacturing operating rule is helping to enter and
quick the market very easily as trend changes.
Extensive distribution network and logistics is helping to sustain
and penetrate in market of Personal Care FMCG.
The low entry barriers in terms of low capital investment, Fiscal
incentives from government and low brand awareness in rural areas
have led to the mushroom of unorganized sector which hamper the
Branded product as they cost high compare to these local one.
The rise in per capita consumption, with improvement in incomes
and affordability and change in tastes and preferences which
increase the demand of Personal care FMCG.
The rural Market is extremely price sensitive small sachets were
introduced in almost all FMCG which are giving good returns in
Hair oil, Shampoo and skin care too.
The FDI policy and other central policy for personal care FMCG
are boosting the investment and new entries both Indians as well as
Multinationals.
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 254
The Quantative restrictions were removed which results into the
boom in FMCG market through market expansion and greater
product opportunities.
The FMCG giant HUL initiated “project shakti” to spur growth
and increase the penetration of its products in rural Indian while
changing lives and boosting Incomes.
The demand supply gap is more as due to innovation and new
Brand launching customer is always ready to taste the product.
The Indian Market is dominated by Ayurvedic Personnel care as
well as Local products at affordable and easy availability.
The GDP growth will boost the FMCG personnel care market in
coming years so heavy investment in this sector yet to come.
The branding evolution helps to read the mind set of fast changing
consumer.
Consumer is made aware of the product through fairs and festival
and cinema van shop which is bringing product towards customer
closely.
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 255
6.06 Suggestion:
A wide study is made on branding strategies of Indian and
Multinational personal care product and it was found that Multinational
has great penetrating market than Indians brands also Indian brands are
few in number compare to Multinational to sustain and grow the
researcher make below suggestions.
The following are the suggestion made by Researcher:-
More Indian personal care brands should be created.
The concentration should be done on local market and strategies should
be focus on local as well as national consumer depending upon the
geographical area.
Increasing demand of consumer to Ayurvedic with no side effect
advertising will give a challenge to local brand as well as National and
Multinational so product is to be design as per need and satisfaction of
consumer.
The brand Image should have local Ambassador as well as celebrities
for advertising Effect.
The brand strategies should be consumer oriented.
The use of branded product awareness program should be launched
through various media and group activities.
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 256
The Hygienic effect of branded product should be concentrated and taken
care off.
The Government should encourage Indian companies by giving some
relaxation in tax at beginning three years to sustain in market and
compete with Multinational who has large volume compare to new
entrants.
Reduce excise duty from 12.5percent -20 percent on industrial oils with
FFA of 20percent or more when imported for manufacture of soaps,
industrial fatty acids and fatty alcohols.
Reduce customs duty from 15percent to 10percent on palm fatty acid
distillate (PFAD), industrial mono-carboxylic fatty acids and fatty
alcohols.
Branded Indian Personal care should penetrate with different strategies
of sustaining and don’t give up in short runs they should think of long
term plan.
Concentration should be given on sale’s promotional activities by Indian
brands.
The success of brand should be measured from time to time and various
short as well as long term strategies should be adopted for sustaining in
market.
Brand repositioning should be done to attract customer back in the
Fold.
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 257
Voluntary admits consumer fillings.
Objectively evaluate appropriate CRM/MSA tools to meet the needs of
the sales force.
Take sales operations function to the next level.
Maintain the volume Growth increasing value boost margin and
Increase the Market share.
Launch premium products take care of its brand success.
Do innovation and give maximum preference to need and wants of
Organized and unorganized consumers patterns.
To continue thrust and higher allocations to social and developmental
programs especially MGNREGA.
For development and sustainability in the local market understand local
social responsibility and contribute to society in terms of charity or funds
for social uplift meant of weaker section of society through Education,
Medicine or building infrastructure facilities.
For sustainability for the raw material make farmers participation through
group building or Profit sharing for consistency in supply of Raw
material.
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 258
Indian Brand should increase limitation of local, try to make it
Multinational Brand by Exploiting Market, with available constraints.
Constant watch should be there on market shifts and necessary strategies
should be adopted as per need of the hour to sustain in market.
If the Finance Minister increases the income tax slab, focus more on the
rural Development and implement the GST. The FMCG sector has a good
growth.
People should be encourage and educated for Hygiene of personal care
through social activity and mass media.
The Indian FMCG Personal Care should increase the more company
outlet to face Competition with MNC for Penetration in the Market.
Innovation should be continuous process and R& D facilities should be
developed by Indian FMCG endogenously.
The more focus should be given up on newly open rural market and
product should be made Customer oriented and affordable easily.
Corporative sectors should be involved in reaching out to the customers.
The customer is looking for what he needs ‘is fast getting replaced with
what he wants’.
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 259
The rising income of Indian consumers has accelerated the trend towards
“Premiumisation” or up trading this should be cached by the Indian
Personal Care FMCG to accelerate growth.
The upper middle class wants to emulate the rich and up trade towards
higher priced products which offer greater functional benefits and
experience compared to products for mass consumption.
Due to liberal policy of government Indian companies continuously
seeking opportunities internationally and also have an access to more
global Brands, products and operating profits.
Increased and relevant functionality coupled with lower cost enable
technology development to drive significant benefits and allow
companies to address the complex business development.
The growing modern trade will compete with existing traditional trade
and offer both a distribution channel through its cash and carry model as
well as more avenues to interact with the customers so focus should be
given to modern trade.
The changing profile and mindset of the customers has shifted the
thought to “Value for money”, one from “Money for value”. The profile
and mindset should be concentrated to sustain in market.
The Indian FMCG should concentrate on High stock turnover for better
penetration and should stop dumping unnecessary.
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 260
The well Known brand like Marico and Nirma should be taken care off
in R & D and other functional Strategies require at grass root level.
The Consumer is giving up of tasting the new products frequently so
Indian FMCG personal care should concentrate on quality, Value, Price
and so on.
6.07 Further scope of research:
Fast moving consumer goods will become Rs 400,000-crore
industry by 2020. A Booz & Company study finds out the trends that will
shape its future. Considering this, the anti-ageing skincare category grew
five times between 2007 and 2008. It‘s today the fastest-growing segment
in the skincare market. Olay, Procter & Gamble‘s premium anti-ageing
skincare brand, captured 20 per cent of the market within a year of its
launch in 2007 and today dominates it with 37 per cent share. Who could
have thought of ready acceptance for anti-ageing creams and lotions some
ten years ago?
Consumption patterns have evolved rapidly in the last five to ten
years. The consumer is trading up to experience the new or what he
hasn‘t. He‘s looking for products with better functionality, quality, value,
and so on. What he needs’ is fast getting replaced with what he wants’. A
new report by Booz & Company for the confederation of Indian Industry
(CII), called FMCG Roadmap to 2020: The game changers, spells out the
key growth drivers for the Indian fast moving consumer goods (FMCG)
industry in the past ten years and identifies the big trends and factors that
will impact its future.
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 261
It has been estimated that the FMCG industry will grow at least 12
per cent annually to become Rs 400,000 Crore in size by 2020.
Additionally, if some of the factors play out favorably, say, GDP grows a
little faster, the government removes bottlenecks such as the goods and
services tax (GST), infrastructure investments pick up, there is more
efficient spending on government subsidy and so on, growth can be
significantly higher. It could be as high as 17 per cent, leading to an
overall industry size of Rs 620,000 Crore by 2020.
Abhishek Malhotra (2010) told that the Indian GDP per capita is
low but many Indian consumer segments which constitute rather large
absolute numbers are either close to or have already reached the tipping
point of rapid growth. The sector is poised for rapid growth over the next
10 years, and by 2020, the industry is expected to be larger, more
responsible and more tuned to its customers.
In the following areas the researcher who is interested to do
research in this area may take following topics for further research.
1. The present study is restricted to Maharashtra it can be studied further by
identifying different state in India.
2. The comparison of penetration of Indian and Multinational personal care
FMCG in rural areas.
3. The branding strategies of Indian Personal care to sustain in Indian
Market share.
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 262
4. The problem and challenges of Indian personal care FMCG in India.
5. The unbranded un-organized Customer shifting towards branded one.
6.08 Managerial Implication:
The Indian FMCG sector is the fourth largest sector in the economy
with a total market size of Rs 167,100 Crores.
Following are the Managerial Implication suggested by
researcher:
Increase competition between organized and unorganized sector by
innovation and launching premium products.
Exploit the availability of key raw material.
Manager should take advantage of cheaper labour costs presence
across the entire value chain.
Concentrate on income level rise of both urban and rural market.
Importance should be given to brand Image Local as well as
national depending upon geographical area.
Brand personality should be given importance through brand
image.
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 263
Brand success should be measure for short term as well as long
term and different strategies are adopted to sustain in market.
Decision of brand repositioning should be taken as per Indian
market and changing scenario.
The profit margin can be increased by increasing volume and
penetrating in market with effective sales force.
Companies should develop some policies concern with market,
social in philanthropy to increase the market share.
Indian brand companies instead of following or waiting for
revolution should take leadership of market by Innovation in
product improving, selling technique and decision capacity of
implementation.
Manager should exploit the policies avail by Government for
FMCG sector from time to time.
Should make different strategies for different market according to
product and its utility.
Price rate of unit should be maintained low as per completion
With Multinational.
Inventory of goods be control by proper distribution Channel
Network.
A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015
Chapter No: 06 Finding, Conclusion Suggestion. Page 264