A STUDY ON CONSUMER PERCEPTION TOWARDS MARICO

PRODUCTS

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PMCI Analysis

Product

Marico limited is one of India’s leading consumer goods companies providing consumer
products and services in the area of health, beauty and wellness. Marico is present in over 25
countries across emerging markets of Asia and Africa. It nurtures multiple brands that expertise
in categories of hair care, skincare, edible oils, health foods, male grooming , and fabric care.

Marico

Natural Organic
products products

Male Saffola Fittify

Hair care Skincare Edible Oils Health Foods Coco Soul
Grooming Gourmet

Marico believed in adding more nutrition to your food and more flavour to life. With this motto,
‘Saffola Fittify Gourmet’ and ‘Coco soul’ products are introduced and the range has been
carefully created by nutritionists and curated by celebrity chef Kunal Kapoor to combine the
best of taste with health for a slimmer fitter life.

SAFFOLA FITTIFY GOURMET:

It created the gourmet products from Breakfast to Dinner Range , super meals, super beverages,
super breakfast.

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 SUPER MEALS Hi-Protein Meal-Soup
Hi- Protein Slim Meal -Shake
SUPER BEVERAGES Healthier Green Tea
Healthy Green Coffee
SUPER BREAKFAST Super Food Quinoa Upma/ Poha
Super Food Millet Upma/Poha

SUPER MEALS:

Hi-Protein Meal-Soup:

Saffola Fittify Gourmet Hi-Protein Meal Soup is a delicious low-calorie meal in exotic flavours
from across the world. It contains dietary fibre, vitamins, minerals and 5 superfoods to help
you manage weight effectively for a slimmer fitter life.

The Hi-Protein Meal Soup is available in 3 flavours namely, Spanish Tomato, Mexican sweet
Corn, Italian Mix Veg.

Hi-Protein Slim Meal-Shake :

A healthy and delicious shake scientifically formulated by nutritionists with a blend of best in
class whey and casein protein to support lean muscle build up. It also contains dietary fiber,
26 vitamins and minerals and 5 superfoods to help you manage weight effectively for a slimmer
fitter life.

The Hi-Protein Slim Meal Shake is available in 7 delectable flavours namely Swiss Chocolate,
French Vanilla, Cookies & Cream, Coffee Caramel, Royal Kesar Pista, Pistachio Almond and
Alphonso Mango. The Cookies & Cream and Pistachio Almond flavours in fact have no added
sugar.

SUPER BEVERAGES:

Superfood Moringa Green Tea:

Moringa (leaves of the drumstick plant) is a nutrition powerhouse. They are power packed with
vitamins and minerals. It is a rich source of protein, iron, calcium and vitamin C and has
antioxidant properties.

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The Superfood Moringa Green Tea is available in 6 flavours namely Classic, Honey Lemon ,
Jasmine ,Lemongrass, Moroccan Mint and Royal Kahwa.

Green Coffee:

It is a health booster that is high in antioxidants and helps in weight management. Unlike
regular coffee, Green Coffee isn’t roasted and hence has 3X more antioxidant power which is
otherwise lost in the roasting process. It contains 50% CGA (Chlorogenic acid), a powerful
antioxidant known to provide several health benefits.

The Green Coffee is available in 5 flavours namely Classic, Classic Strong, Ginger Basil,
Lemon Mint and Lemongrass Lavender.

SUPER BREAKFAST:

Super Food Quinoa Upma/ Poha:

Made with Superfood Quinoa, it has up to 80% more protein (than regular Poha), that is known
to help build muscle and give you a power packed start to the day.

Super Food Millet Upma/Poha:

Made with the power of 5 Superfood Millets, which are ancient grains well known to be a
nutritious source of protein, fiber, vitamins and minerals.

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COCO SOUL:

India’s finest vegan Gourmet product

Coconut Coconut
Oils Spreads
Sugar Chips

Virgin Infused Peanut Almond

Coconut
Coconut coconut coconut Coconut
oil Spread BUtter
oil Butter

Oils:

Cold Pressed Virgin Coconut Oil:

Coco Soul Virgin Coconut Oil is a Superfood which is 100% organic & natural. It is
specifically prepared from fresh raw coconuts through a meticulous No Heat Process, which
helps preserve vital nutrients.

Virgin Coconut Oil is one of the richest plant based sources of naturally occurring Medium
Chain Triglycerides (MCTs). These MCTs contribute up to 60% of the total fats in Virgin
Coconut Oil. Unlike long chain saturated fats, MCTs get rapidly digested for instant energy
release and help in weight management. The MCTs in Virgin Coconut Oil breakdown into
ketones that support cognition/memory function.

Infused Cold Pressed Virgin Coconut Oil:

Coco Soul Infused Cold Pressed Virgin Coconut Oil is made using 100% natural cold pressed
virgin coconut oil infused with hot red chilli and delectable oregano extract. Expertly curated
by Chef Kunal Kapur, this oil is your perfect partner to your salad or pasta and can also be used

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to create delicious dips. It is cold pressed to preserve vital nutrients, made with 100% natural
ingredients and is a rich source of medium chain triglycerides (MCTs).

It has up to 60% naturally occurring MCTs which get rapidly digested for instant energy
release, aid in digestion and help in weight management. The MCTs in virgin coconut oil
breakdown into ketones that support brain functioning.

Note: This oil has a high smoke point which allows high heat cooking.

Spreads:

Coconut Spread:

Coco Soul Coconut Spread – Original is a rich, creamy vegan spread made with 100% natural
ingredients. This delectable indulgence is made in a simple formulation using only coconut
milk and coconut syrup.

Peanut Coconut Butter:

It is made with clean, simple formulation of high quality peanuts (70%) and freshly harvested
coconuts (30%) in a carefully curated ratio to deliver health and taste. The butter is high in
protein, contains no added sugar, hydrogenated oils or stabilisers and that makes it a great
alternative to regular butters and spreads.

Almond Coconut Butter:

It is made with clean, simple formulation of high quality almonds (85%) and freshly harvested
coconuts (15%) in a carefully curated ratio to deliver health and taste. The butter is high in
protein, contains no added sugar, hydrogenated oils or stabilisers and that makes it a great
alternative to regular butters and spreads.

Coconut Sugar:

Coco Soul Coconut Sugar has a low Glycaemic Index (GI) and is rich in Potassium which
makes it a good alternative to refined sugar for your favourite beverages, desserts or smoothies.

It is also rich in potassium and has small amounts of Calcium and Iron.

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Coconut Chips:

Coco Soul Coconut Chips Caramel – immerse yourself in the ultimate crunchy coconut
indulgence with every bite! These chips are made using 100% natural coconuts and are only
roasted, not fried.

The chips are high in fibre, contain zero cholesterol and are gluten-free by nature.

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 MARKET

Marico has flat organised structure with five levels between the managing director and floor
operator.

While the current inflationary inputs costs may impact profitability in the first half, the
company believes that focus on franchise expansion with threshold margins will stand them in
good stead to write a medium-term profitable growth story.

Future and Current Market Size:

Homegrown FMCG major Marico NSE 1.23% is targeting an 8-10 percent volume growth in
the country along with healthy market share gains.

“For FY19 and beyond, Marico retain the target of 8-10 percent volume growth in India
accompanied by healthy market share gains. Accelerated innovation and focus on digital will
be strong enablers.

Acknowledging that digital is the future, the company is embedding it in consumer

engagement, creating digital brands and charting aggressive growth plans for e-commerce.

The leadership team's focus on nurturing new engines of growth in premium hair nourishment,
male grooming, skin care and healthy foods shall ensure broad-based growth in the coming
years.
The company that makes Parachute and Saffola, is also bullish on the rural consumption in
2018. .With rural sales contributing 32 per cent of domestic revenues, the company expects to
take this up by at least 3-4 percentage points in the next 3-5 years by driving penetration
through price point packs and focused go-to-market initiatives.

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Marico Ltd Share Holding as on 30-09-2019:

Healthy compounded annual growth of 10% over 5 fiscals through 2019, which was better than
its peers, was driven by increasing rural reach (contribution increased to 32% in fiscal 2019
from 26% in fiscal 2010), better than industry growth in key segments such as coconut oil,
healthy foods and contribution of new product launches. CRISIL expects Marico's revenue
growth to sustain at ~10% over the medium term driven by stronger product pipeline, diverse
product portfolio, increasing distribution reach and geographic diversity.
Complementing the strong market position is steady improvement in operating efficiency
reflected in healthy operating margin of 17-19% and return on capital employed of 41%. Going
forward, expected increase in premium product mix, improved profitability of international
business and strong pricing power across segments will benefit to sustain operating margin at
~16-18% despite planned increase in promotional spend. The ratings continue to reflect leading
position across product categories, improving revenue diversity, healthy operating efficiency,
and a robust financial risk profile. These rating strengths are partially offset by moderate
susceptibility of the operating margin to competition and to raw material price volatility.

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 COMPANY

Profile

Marico Limited is one of India's leading consumer products companies operating in the beauty
and wellness space. Currently present in 25 countries across emerging markets of Asia and
Africa, Marico has nurtured multiple brands in the categories of hair care, skin care, edible oils,
health foods, male grooming, and fabric care.

Marico's India business markets household brands such as Parachute, Parachute Advanced,
Saffola, Hair & Care, , Nihar Naturals, Livon, Set Wet, Mediker and Revive among others that
add value to the life of 1 in every 3 Indians.

The International business offers unique brands such as Parachute, Hair Code, Fiancée, Black
Chic, Code 10, Ingwe, X-Men that are localized to fulfil the lifestyle needs of our international
consumers.

Charting an annual turnover of INR 63 billion (Financial Year 2017 - 2018) across their
portfolio, Marico's sustainable growth story rests on an empowering work culture that
encourages their members to take complete ownership and make a difference to the entire
business ecosystem.

Business Discrimination

Marico Limited (Marico) is an India-based company, engaged in offering a range of fast-

moving consumer goods (FMCG) such as hair care, skin care, healthy foods, hair oils for pre-
wash and post-wash hair conditioning, nourishment and grooming needs in the branded hair
oils market.

Marico markets its products in India, Malaysia, Bangladesh, Vietnam, Middle East, South
Africa, Egypt.

The company operates through two business segments: consumer products and others.

Marico’s consumer product segment offers coconut oils, other edible oils, hair oils and other
hair care products, male grooming products, fabric care products, healthy foods, soaps, health
care products, and female beauty care products.

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History

Marico was incorporated in the year 1988. In 1990, the company took over an old consumer
products business of The Bombay Oil Industries Limited. In 1996, the company was listed on
the National Stock Exchange of India and Bombay Stock Exchange. In 2007, the company
reorganized its operations, three operating units were created, namely.

Consumer Products Business, Kaya Business and International Business. In the same year, the
Marico Group (Marico) entered a strategic alliance with the Cairo-based Pyramids Group for
the hair care brand Hair Code. In February 2011, Marico acquired 85% equity in International
Consumer Products Corporation (ICP), Vietnamese FMCG Company.

In 2014 Marico group turnover crosses Rs 5,000 crore and in 2015 Marico’s market cap tops
INR 25,000 crore.

Location

Founded: Bombay, Maharashtra, India (2 April 1990; 29 years ago)

Founder: Harsh Mariwala

Headquarters: Grande Palladium, 175, CST Road, Kalina, Santacruz, Mumbai, Maharashtra,
India

Area served: Worldwide

Revenue: ₹7,968.3 crore (US$1.2 billion)

Number of employees: 2402 (2016)

Major products and services

Marico Limited is a fast-moving consumer products and services company which is operating
in the beauty and wellness space.

Innovative practices of the company

Marico Innovation Foundation recognises the most breakthrough Indian Innovations

Marico Innovation Foundation is a not-for-profit organisation working towards the cause of

innovation since 2003. The Foundation creates impact through its four core programs:

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MIF Scale-up program works closely with innovative social organisations which are driven to
achieve large scale impact. They diagnose the challenges, implement prototype solutions and
integrate successful solutions into the business offering of the organisation.

MIF is presently working with 8 organisations across 6 sectors in India. MIF Innovation
Awards celebrate the most breakthrough Indian innovations that hold the potential to have a
large-scale impact. 49 breakthrough innovations have been recognised in the last 10 years.

They have also created a platform called hack2incubate designed to inspire innovations and
incubate them into successful businesses.

Nature of Competition:

The competitors for Saffola Fittify brand in beverages are Organic India, Tetley, Lipton,
Hilscart,24 mantra organic green tea, Typhoo India, Twining’s in breakfast are MTR, MOM
and in meals Knorr, cup-a-soup, ProteinX, Horlicks have a perfect competition. For coco soul
brand they have perfect competition with Max care, Nirmal, Dr’s Coconut oil.

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 INDUSTRY

Industry size & CAGR of the industry and company:

Industry size:

The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840 billion
in 2017, with modern trade expected to grow at 20 per cent - 25 per cent per annum, which is
likely to boost revenues of FMCG companies. Revenues of FMCG sector reached Rs 3.4 lakh
crore (US$ 52.75 billion) in FY18 and are estimated to reach US$ 103.7 billion in 2020. The
sector witnessed growth of 16.5 per cent in value terms between July-September 2018;
supported by moderate inflation, increase in private consumption and rural income.
CAGR of Industry:
CAGR of FMCG industry is expected to grow 27.86% by 2020. The sector is projected to grow
11-12% in 2019.As it witnessed the growth of 16.5% in value terms between June-September
2018. FMCG’s urban segment is expected to have a steady revenue growth at 8 per cent in
FY19 and the rural segment is forecasted to contribute 15-16 per cent of total income in FY19.

CAGR OF Company( Marico):

Compound Annual Growth Rate Of Marico Ltd:

Revenue 6.69%

Net Income 2%

EPS Basic 2%

INDUSTRY TRENDS, DRIVERS AND CHALLENGES:

Industry Trends:

 Make it regional. FMCG companies are increasingly appealing to consumers by

launching products with regional provenance thorough flavours, ingredients, recipes,
and more. Though consumers may express a preference for local ingredients and
flavours, local is difficult for big brands to achieve. As an alternative, big brands are
connecting with consumers by using regional flavours and ingredients that tap into
regional and home country pride.

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  Gender-bending beauty. Changing views toward gender identity are impacting the
beauty market by blurring the lines between female and male beauty. The blurring of
these traditional binary gender identities is opening the door for concepts like
genderless beauty and ot
 her crossover innovation. The first makeup stores for men will make an appearance this
year like MMUK Man’s new brick-and-mortar store in the UK together with fragrances
that are appropriate for all genders and other game-changing developments.
 Declaring war on plastic. Solid waste and pollution issues are catching up with plastic,
so much so that 2018 could mark the beginning of a “war on plastic.” Packaged goods
makers are beginning to move away from traditional plastic packaging, and toward
sustainable options like sugarcane “plastic” tubes as well as bowls made from plant
fibres.

Industry Drivers:

 Rising rural demand, increasing preference for premium and natural products are
driving FMCG sales

Industry Challenges:

 Big Data
 Social media
 Online grocery shopping
 Environment & Sustainability
 Ageing

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 VALUE CHAIN ANALYSIS

 A value chain is a chain of activities for a firm operating in a specific industry.

 The business unit is the appropriate level for construction of
 a value chain, not the divisional level or corporate level.
 Products pass through all activities of the chain in order, and at each activity the product
gains some value.
 The chain of activities gives the products more added value
 than the sum of added values of all activities.
 It is important not to mix the concept of the value chain with the costs occurring
throughout the activities.

Activities:

 The value chain categorizes the activities of an organization

 The Primary activities include: inbound logistics , operations (production) , marketing
and sales (demand) and services ( maintenance).
 The “Support activities “ include : administrative infrastructure management, human
resource management, technology ( R&D) , and are identified for each value activity.

Primary Activity of Marico:

Inbound Logistics:

 These are the activities concerned with receiving the materials from suppliers, storing
these externally sourced materials, and handling them within the firm.

 Here goods are received from a company's suppliers.

 They are stored until they are needed on the production/assembly line. Goods are
moved around the organization.
 MARICO purchase their raw material from all around the world.
 In order to maximize their availability of raw material MARICO maintain good
relationship with their suppliers.
 MARICO use JIT (Just in Time) approach for handling of raw material
Operations:
 These are the activities related to the production of products and services.

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  This area can be split into more departments in certain companies.
 For example, the operations in case of a hotel would include reception, room service
etc.
 This is where goods are manufactured.
 Operations could include organizing the parts to make final FMCG Product.
 MARICO are known for their reliability which comes from efficient operations.

Outbound Logistics:

 These are all the activities concerned with distributing the final product and/or service
to the customers.
 For example, in case of a hotel this activity would entail the ways of bringing customers
to the hotel.
 The goods are now finished, and they need to be sent along the supply chain to
wholesalers, retailers or the final consumer.
 MARICO manage their Distributor and Super Distributor in different rural and urban
area.
 MARICO make their product easily assessable.

Marketing and Sales:

 This functional area essentially analyses the needs and wants of customers and is
responsible for creating awareness among the target audience of the company about the
firm’s products and services.
 Companies make use of marketing communications tools like advertising, sales
promotions etc. to attract customers to their products.
 MARICO given TV ads and magazine for a marketing.
 This area focuses strongly upon marketing communications and the promotions mix.

Service:

 There is often a need to provide services like pre-installation or after sale service before
or after the sale of the product or service.
 This include all areas of services such as final checking, after-sales services like quality,
quantity, packaging, weight etc..
 Marico values their customers.
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Support activities of Marico:

Procurement:

 This function is responsible for purchasing the materials that are necessary for the
company’s operations.
 An efficient procurement department should be able to obtain the highest quality goods
at the lowest prices.
 This function is responsible for all purchasing of goods, services and materials.
 The aims to secure the lowest possible price for purchases of the highest possible
quality.
 Marico will be responsible for outsourcing and e-Purchasing (using IT and web-based
technologies to achieve procurement aims).

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 SWOT Analysis

Strength Weaknesses

 Offer high quality and healthier products.  Highly priced than other products.
 A wide range of vegan food items.  Poor inventory management control
 Good customer service.

Opportunities Threats

 Growing number of vegetarians.  A high rate of competition as the

 A high rate of internet users to market products are also available at discounters,
products online. organic food stores and large
 Changing consumers eating behaviour supermarket.
into healthier food.  Price War.
 A wide range of advertisement  Economic downturn.
opportunities from external parties (
Vegan books, Vegan You tube channels,
Vegan blogs) to boost merchandise sales.

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 Potter’s Five Forces Model

The Five Forces are: the threat of entry into an industry; the threat of substitutes to the
industry’s product or services; the power of buyer of the industry’s products or services; the
power of suppliers into the industry ; and the extent of rivalry between competitors in the
industry

1. Threat of new entry barriers:

The Threat of entry barriers , which Porter states that ‘‘The threat of entry in an industry
depends on the height of entry barriers that are present and on the reaction entrants can expect
from incumbents. If entry barriers are low and new-comers expect little retaliation from the
entrenched competitors, the threat of entry is high and industry profitability is moderated. It is
the threat of entry, not whether entry actually occurs, that holds down profitability.

“Adolescents are the consumers of tomorrow; therefore, policies aimed at increasing organic
food consumption should address the needs of this group.’’ the force of barrier of entry, which
are the existing competitors in different markets. It is planned to offer different types of foods
that adolescents consume most, it is appointed that fast food is one of the most consumed foods
by young people, so it is attended to develop a business strategy that will create an organic and
sustainable fast food brand that will not only give sustainable food, it will also bring nutrition
education that will generate more market growth leading to a popularity success of the organic
food industry.

The Majority of adolescents are always consuming fast foods from non-sustainable companies,
it is pretty important to focus on this young niche of the market, because they will always be
the future business consumers of the world. The threat of barriers and Rivalry between
competitors which Porter states that ‘‘Rivalry among existing competitors takes many familiar
forms, including price discounting, new product introductions, advertising campaigns, and
service improvements. High rivalry limits the profitability of an industry. The degree to which
rivalry drives down an industry’s profit potential depends, first, on the intensity with which
companies compete and, second, on the basis on which they compete.’’

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2.Rivalry among existing competitors:

“Management of business-to-business relationships in the rapidly growing UK organic food

industry. Interviewees perceived that supermarkets were attempting to use market power to
dominate the industry’’. These barriers and competitor rivals like in this article in UK sector
or market will represent the big food companies which organic food industries have to
overcome as new entrants on the market. Most of rivals food supermarkets are attempting to
use market power to dominate the industry. Therefore, a need of relationship management as a
business strategy in what concerns the food market business will be required , which will bring
better productivity channels that will help to get profit in the organic food industry .

3.Power of Suppliers:

The threat of substitutes which Porter states that ‘‘When the threat of substitutes is high,
industry profitability suffers. Substitute products or services limit an industry’s profit potential
by placing a ceiling on prices. If an industry does not distance itself from substitutes through
product performance, marketing, or other means, it will suffer in terms of profitability and often
growth potential.”

Today’s customers know the serious damages that genetically modified food and food that is
cultivated with herbicides and pesticides are affecting health and environment. This could lead
to a substitute of products by getting to consume more organic products than traditional
groceries. Although , there is ratio of quality/price which shows that customers are willing to
pay more for organic food than having diseases as an effect on health. Porter’s business model
will build a business strategy that will encourage customers to purchase Organic Food in step
of Traditional groceries (GMO or non-sustainable food).

4.Bargaining Power of Buyer:

It shows the impact of ethical motivations, food safety and health-related concerns on
purchasing intentions of habitual and less frequent consumers of organic food’’. The bargaining
power of buyers will be the force that is going to be linked with the article, Michael Porter
states that “Powerful customers— the flip side of powerful suppliers can cap turn more value
by forcing down prices, demanding better quality or more service (thereby driving up costs),
and generally playing industry participants off against one another’’.

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Buyers are starting to buy for organic food from sustainable farms, firstly because its cheaper
than getting directly to the supermarkets , and secondly that encourage and support local
organic farming, having an increase of sales in the organic food industry . Also some customers
are trying to get connections with organic farms for getting to know how to crop their own food
in a sustainable way, and having as a result the switch of buyers for lower cost products and
the buyer competition threat.

5.Threat of Substitutes:

“ Higher sales and margins are key goals for retailers promoting emerging products, such as
organics, but little is known about their marketing effectiveness and their cross-effects on
conventional product sales.

The threat of substitutes will be force, the organic food industry needs to create a business
strategy that involves a good promotion plan which will show customers the product or service
ratio price/quality that will encourage them to get the products. Most of the organic food
industries does not know how to prepare a good marketing plan , which today do not give the
pros and cos of organic food and traditional food ( Gmo ,pesticides).It says that the marketing
environment, and as well to establish business strategies for implementing a deeper promotion
plan in the organic food industry.

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 Details of the Project work

Introduction of the project work:

Direct marketing for Fittify range by Marico, and to identify lever for product adoption among
consumers. Focus to be in following areas

 Product Communication

 Visibility elements

 Sampling
 Other relevant activations for the brand inside the store like consumer offer etc.

During my study I understood consumer perception influence business to a great extent ,

Though a consumer’s perception about a product or service to some extent is said to be based
on his or her actual experience obtained from the use of specific goods or service.

As well as In-store promotions are a highly effective marketing tactic designed to bring
customers to your brick and mortar store and build brand or product awareness.
Training imparted by Marico:
The training was imparted by Marico is “consumer Connect” where we have to understand
the consumer buying behaviour and perception towards a newly launched products in the
market, along with that how In-store promotions will help to increase the sales.

How consumer perception influences business

The success or failure of a business to a great extent is influenced by consumer perception.

Though a consumer’s perception about a product or service to some extent is said to be based
on his or her actual experience obtained from the use of specific goods or service, it is also to
great extent influenced by a variety of other factors such as price, quality and reputation of
the manufacturer, branding and packaging including other complex psychological factors.

Consumer perception & affecting factors:

1. Pricing of a product or service

Pricing of a product has a key effect on consumer perception. Though a large majority of
consumers appreciate and favour a low or reasonably priced item, there are also cross

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sections of sophisticated and sceptical consumers who look down up a product that is
considerably low priced than the others available alternatives.

Hence pricing of a product or service should form the basis of larger marketing plan. By
doing so, even low priced products can be marketed as favourable ones with good quality
and at a better price.

2. Quality of a product

The importance of the quality of a product or service from the perception o a consumer
can never be undermined. Any feature of the product such as its uses durability and how
reliable the product is satisfying or disappointing the consumer can be described as its
quality

Marketing to a great extent helps in influencing the consumer’s perception about the
quality of product but even word of mouth communication about quality of a product is
equally effective and travels fast.

Though marketing plays a greater role in influencing the consumer’s opinion about
quality of a product, it is the consumer’s inherent opinion from the use of a specific
product or service that will determine the awareness about quality.

3. Branding and packaging of a product

First impression is the best impression very aptly applies to consumer perception of a
product especially at the time purchase. How a product is attractively packaged to exhibit
the display quality by the manufacturer determines the perception of the product. Even
branding messages such as reliable, long lasting tough are of great help in promoting the
product perception.

Businesses regularly conduct market research to obtain insight about consumer

preferences and perceptions. This forms the basis to understand how and why consumers
prefer some products over others. This further helps businesses to provide and promote
such products and services effectively that are in demand from consumers.

4. History & Reputation

History and reputation of a company and its products and service plays an equally
important role in the consumers perception. Age old businesses with strong reputation

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 and history are always preferred by consumers whereas new products are always tried
with caution and based on public opinion and reviews.

Online and offline reputation of a company and products and services largely influence
the consumer perception. Any negative reviews and opinions online or by word of mouth
can strongly affect the overall performance of any business. If any product has not
performed well in the past or if any company has been alleged for any unscrupulous
activity will strongly affect its performance for long period of time.

In- store promotions are any marketing or sales promotion that is done in a brick and mortar
business location. In-store promotions are a highly effective marketing tactic designed to
bring customers to your brick and mortar store and build brand or product awareness. With
the help of In-store promotions we can increase the Point of sale ( POS).

With POS advertising , the promotion is advertised in store, where customers or clients pay
you for your business. If a customer who walks into the Retail outlet on their way may see
your products signage or POS advertising, about the promotion and purchase the products
than he/she originally intended . This is an effective way to use POS advertising to encourage
impulse purchase.

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Project work area deliverables:
Objective of the report:
The Primary objective of the project is to understand customer perception in Modern trade
outlets for premium healthy food products and develop them into actionable consumer insights
that can help in accelerating brand adoption by the target consumers.

Scope:
The report’s scopes are followed below-
• During our internship we are limited to only one store, we only know the buying
behaviour of the consumer who are in that location and who visits the store.
• In collecting the primary data from the customers its really hard as the information
provided by them may be of false feeling
• Through mall intercept we can collect the genuine data but it is the time taking process
so the customers are less interested to take part in the survey
• Information for the analysis was collected from the websites, research papers, study
materials.
• Geographic scope of the report is limited within Hyderabad market.
Methodology:
Two basic methods were used to achieve the required results;
Qualitative Analysis:
A less number of unstructured interviews were taken on some of the merchandisers and
customers to get proper insight on the buying behaviour of premium healthy food products.
Online Survey Questionnaire:
To know the customer insights on the premium healthy food products in their life, an online
survey questionnaire was designed.
Overview of the Data Collected and Used:
The study will be both a mixture of quantitative along with qualitative part. A basic overview
of the data collected and used to make this report are described below
Data Type: This report will be based both on Primary and Secondary data
Primary Source:
Primary data on social media is collected from surveying of target group and personal
observation.

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Secondary Source:
Like primary source, secondary source is also major stream of information for the report. List
of the secondary source is

1. Internet
2. Social Network Sites
3. Text books
4. And other sources

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Findings:
• Customer loyalty can be hard to come by these days , and in store promotions are an
important facet of building and developing that loyalty.
• We find that with an increase in customer loyalty comes an increase in revenue and
Brand Satisfaction.
• Customer purchase Decision
a) Over 60% of Purchase decisions are made at the shop Front.
b) 90% of consumers buy on IMPULSE.
• In some stores through sampling activities we observed the difference in the sales, the
store with a sampling activity have huge sales when compared to no sampling stores.

Learning From the Project:

Learnings:
• Got to know about Marico company ,its product range and its innovative strategy
• Experienced how most trusted brand create its first time buyer for its new product range.
• Ensure a Good display at the shop level always.
• POP materials should always be present on the product, as per the guidelines.
• In Modern trade promotions there is an innovative merchandise display ( Increasing
visibility and recall value of Brand)
• Increase rate of an impulsive purchase.
• Need Identification

Conclusion:
• Marico has brand image but most of the customers are unaware about the healthy
gourmet category. So Marico has to improve its promotional activities to increase the
awareness on healthy gourmet products in order to increase the sales.
• Sampling of every product is required in every store especially for Saffola fifty
Gourmet.
• To sum it up all it is mandatory for business to conduct market research and understand
consumer perception to better position themselves in the competition and drive
increased customers and sales. With the help of a reliable market research services

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providers such as research services, businesses can very well keep a track of their
business performance by monitoring influence of consumer perception.

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