INFLUENCE OF EMOTIONS ON CONSUMER BUYING

BEHAVIOUR: A STUDY ON FMCG INDUSTRY.

Project work submitted in partial fulfilment of the requirements for the

award of the Degree of
BACHELOR OF BUSINESS ADMINISTRATION
of
CMR UNIVERSITY

By
SIMI SAHA
17BBAD075

Under the guidance of

DR SUBHASREE KAR
ASSOCIATE PROFESSOR

CMR UNIVERSITY

CMR UNIVERSITY
2017–2020
 DECLARATION

I hereby declare that “INFLUENCE OF EMOTIONS ON CONSUMER BUYING

BEHAVIOUR: A STUDY ON FMCG INDUSTRY” is the result of the project
work carried out by me under the guidance of Dr Subhasree Kar in partial fulfilment
for the award of Bachelor’s Degree in Business administration by CMR University.

I also declare that this project is the outcome of my own efforts and that it has not
been submitted to any other university or Institute for the award of any other degree
or Diploma or Certificate.

Bangalore Simi Saha

17BBAD075

i|Page
 CERTIFICATE OF ORIGINALITY

Date:

This is to certify that the Project work titled “INFLUENCE OF EMOTIONS ON

CONSUMER BUYING BEHAVIOUR: A STUDY ON FMCG INDUSTRY” is
an original work of MS. SIMI SAHA bearing University Register Number
17BBAD075 and is being submitted in partial fulfillment for the award of the
Bachelor’s Degree in Business administration of CMR University. The report has not
been submitted earlier either to this University /Institution for the fulfillment of the
requirement of a course of study.

(Dr Subhasree Kar) (Dr Subhasree Kar)

SIGNATURE OF GUIDE SIGNATURE OF THE DIRECTOR
DATE: DATE:

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 ACKNOWLEDGEMENT

I would like to begin this report by acknowledging the sincere help and kind support
of all the people who helped me during the course of the study and while preparing
this report.

I would like to start off by thanking the supreme power, the Almighty God who is
obviously the one who has always guided me to work on the right path of life.
Without his grace this project could not become a reality.

I am highly indebted to my guide Dr Subhasree Kar, for their guidance and constant
supervision as well as for providing necessary information regarding my project.

I heartily thank the management of CMR University for giving me the opportunity to
undertake such kind of learning experience which enhanced my knowledge. I would
also like to thank all the faculty of the University for their kind cooperation and
encouragement.

I am extremely grateful to the respondents of my questionnaire who gave their

precious time to accomplish my project.

Last but not the least, I express my affection to my family and friends for being so
encouraging and supportive throughout the duration of the project and who has
helped me in any way in my project.

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 Table of Contents

CONTENTS

Chapter No INDEX Page No

Declaration i

Certificate of Originality ii

Acknowledgement iii

List of Figures v

List of Tables vi

Executive Summery vii

1 Introduction 1-4

2 Profile of the organisation 4-33

3 34-39
Review of Literature and Research Design

4 Data Analysis and Interpretation 40-50

5 Summary of findings, conclusions and suggestions 51-54

Bibliography viii

Annexure ix-xi

List of Figures
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Figure Figure Name Page
Numbe Number
r
1 Hindustan Unilever Limited Logo 8
2 ITC Logo 15
3 Nestle Logo 21
4 Britannia Logo 23
5 Cadbury Logo 29
6 Age of respondents 41
7 Occupation of respondents 42
8 Category of customer 43
9 Preferred FMCG brand 44
10 Reasons for choosing a particular product 45
11 Influence of offers on purchase decisions 46
12 Influence of celebrity endorsement on purchase decisions 47
13 Role of emotions in purchasing decisions 48
14 Role of prestige in purchasing decisions 49
15 Role of peer group in purchasing decisions 50

List of Tables

Table Table Name Page

Numbe Number
r

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 2.1 Corporate information of HUL 14
2.2 Corporate information of ITC Limited 20
2.3 Corporate Information of Nestle 23
2.4 Corporate information of Britannia 29
2.5 Corporate information of Cadbury 33
4.1 Age of respondents 41
4.2 Occupation of respondents 42
4.3 Category of customer 43
4.4 Preferred FMCG brand 44
4.5 Reasons for choosing a particular product 45
4.6 Influence of offers on purchase decisions 46
4.7 Influence of celebrity endorsement on purchase decisions 47
4.8 Role of emotions in purchasing decisions 48
4.9 Role of prestige in purchasing decisions 49
4.10 Role of peer group in purchasing decisions 50

Executive Summary

Consumer behavior is always uncertain and rational. The complex black box of
consumer is a challenge to the marketers and researchers across the world for its
nature and tendency to change within no time. Consumer responses towards different
marketing programs cannot be same and hence differ by means of its actions which
are emotional and always stated as irrational. There are different emotional chords of
consumers targeted by marketers in order to generate sales and managing effectively
the marketing program. The present study entitled “INFLUENCE OF EMOTIONS

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ON CONSUMER BUYING BEHAVIOUR: A STUDY ON FMCG INDUSTRY” is
an attempt to investigate the role of emotions on FMCG purchases. The study
highlighted the relevant emotions in consumer purchases of FMCG products. As part
of the study, a survey was conducted on 50 respondents from Bangalore to understand
if emotions play an important role in purchasing decisions. Through the study, it is
found that one of the factors which influence the buying behaviour is the customers
emotions attached to the brand.

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Chapter 1
Introduction

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1.1 Introduction to the study
Consumer response to marketing efforts is emotional and reflects different kind of
meanings. As a product is purchased by a consumer, the possession of a brand or
product may make a consumer feel differently. The variety of aspects associated with
the purchases portray different array of emotions. Some consumers associate their
purchase with being unique and feel proud. Whereas, some involve themselves in
purchase and get excited. There is another class of consumers which used to associate
their purchases with a sense of responsibility and feel confident. These associations of
consumer purchases with different set of psychological states led to increase in the
study of consumer emotions arising out of purchases.
There are various researches conducted in India and abroad with consumer emotions
as focus and trying to explore the unknown side of the consumer psychology
supported by technological advancements. Also, the marketers now a day are trying
to study the consumer emotions with insights into consumer black box to serve the
aim of winning consumer hearts. The advancements in technology has opened new
avenues in this particular area and is one of the most researched subject in consumer
behavior. The present study attempts to underline the impact of emotions on
consumer purchases with respect to FMCG. The study is based on the empirical
findings of the research conducted in Bangalore. The study was designed to gain
insights into the impact of emotions in FMCG purchase decisions. The study also
highlighted the most relevant emotions which affect the consumer psychology while
purchasing FMCG and further explores the relationship between emotional
associations and purchase decisions. The study was conducted by keeping in mind
only those emotions which are relevant to low involvement purchases and were
carefully explained to respondents to minimize the risk of respondents’ biasness.

1.2 Relevance of Emotions to Purchases

Relevance of emotions with the purchases can be traced back with the emergence of
marketing. The emotions are one of the leading drivers of purchases and their
association with purchase increases manifold with the product variety and similarity

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arising out of cut throat competition. It is a well established fact that more the
products are on rise in terms of similarity in the market; the more consumers are
associating their purchases with emotions to justify the product selection. So, it is a
matter of great research that what are those underlying emotions that let consumers
choose one brand of product over the other. There can be various answers to this or it
can be associated that consumers choose things out of habit because they have been
using it since long. Some researches attributed purchase decisions to the brand
positions in the marketplace.
The role of emotions increases manifold in case of FMCG purchases as this segment
has a variety of product which varies in terms of their usage. Also, one of the most
significant factors attached to this category is the higher purchase frequency which
makes it one of the most favourable segments to hold consumer emotions.

1.3 The Emotional Experience

The motive of consumer purchase of products and services comprised of either to
have experience of emotional state or to achieve emotional goals. The main motive of
products usage by consumers revolves around objectives either to create a sense of
pleasant feeling through purchase or to attain it through senses and to obtain
emotional arousal. There are varieties of product purchases which have negligible or
very small functional value; but still these products are purchased purely for their
ability to arouse emotions. The best example of such purchases include visit to a
cricket match or buying a ticket to a military parade. In these two cases, there is very
small functional value of such events to consumers but still the consumers go for
these purchases just to arouse emotions.
A product or service purchase with happiness and good experience leads to re
purchases and the better part of this experience is stored in the consumer’s mind. This
experience reminds him of that product or service every time and an emotional thread
is created between the two. This emotional thread hence establishes an emotional
connection between the purchase and consumer. Therefore, it is regarded as most
powerful method of linking consumer to future purchases and is at great tool in the
hands of marketers to showcase the value of the product or service. This emotional

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connection between the consumer and purchases is the degree to which consumers
care about their purchases and its rational attributes. This association is more inclined
towards psychological ground than being logical and is obviously unconscious rather
than being conscious. In short, it can be stated that emotional connection is a chief
contributor to a firm success.

1.4 Emotions as Tool in Customer Satisfaction

Emotions are most important in defining the level of satisfaction or dissatisfaction
with products or services purchased. A positive emotion linked with a purchase not
only means customer satisfaction but is also linked with the progressive state of
consumers towards products and services recall with their evaluation on a better side.
It is well established fact that consumers try to derive positive emotions from the
purchases, but it is not always possible to have the same results from alike processes
and sometimes consumers feel a bit negative after a purchase. A movie without a
happy ending and a newly purchased product with advanced features which are
beyond the understanding of consumer are the examples of such purchase encounters.
Innate Feelings of happiness, pride and love will result in satisfaction; and feelings of
sadness, distress and fear will lead consumers towards dissatisfaction. So, it is upto
the marketers to generate positive emotional states amongst consumers to get
benefited and to escape from post purchase dissonance.

1.5 Emotions as Mode of Communication

Emotions play great role as a source of communication from the marketer’s side and
helps to generate consumer responses like advertising. Communication in the form of
advertising creates both favourable and unfavourable responses and help to induce
different feelings in consumers. Emotional advertisements initiate cognitive reactions
and are likely to get responded than the neutral advertisements. Emotions in
advertisements increase the physiological arousal which leads to increase in attention
and alertness in an individual. Because of this induced alertness and attention, the
individual tend to filter the emotional advertisements more clearly and hence create a
long lasting effect on the mind of consumers.

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 Chapter 2
PROFILE OF THE ORGANIZATIONS

5|Page
2.1 INTRODUCTION OF FMCG INDUSTRY

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods
(CPG), are products that are sold quickly at relatively low cost. Though the absolute
profit made on FMCG products is relatively small, they generally sell in large
quantities, so the cumulative profit on such products can be large.

Examples of FMCG generally include a wide range of frequently purchased

consumer products such as toiletries, soap, cosmetics, teeth cleaning products,
shaving products and detergents, as well as other non-durables such as glassware,
light bulbs, batteries, paper products and plastic goods. FMCG may also include
pharmaceuticals, consumer electronics, packaged food products and drinks, although
these are often categorized separately.

FMCG have a short shelf life, either as a result of high consumer demand or because
the product deteriorates rapidly. Some FMCGs—such as meat, fruits and vegetables,
dairy products, and baked goods—are highly perishable. Other goods such as
alcohol, toiletries, pre-packaged foods, soft drinks, and cleaning products have high
turnover rates. An excellent example is a newspaper—every day's newspaper carries
different content, making one useless just one day later, necessitating a new purchase
every day.

Main characteristics of FMCGs:

From the consumers' perspective:

1. Frequent purchase

2. Low involvement

3. Low price

From the marketers' angle:

1. High volumes

2. Low contribution margins

3. Extensive distribution network

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2.2 LIST OF THE COMPANIES UNDER THE FMCG SECTOR

 Hindustan Unilever

 ITC Ltd.

 Pidilite Industries

 Amul

 Godrej Consumer Products Limited

 Dabur India Ltd.

 Emami

 Colgate Palmolive India Ltd.

 Zydus Wellness

 Britannia

 GlaxoSmithKline Consumer Healthcare Ltd. (India)

 Wipro Consumer Care & Lighting Ltd.

 Marico

 CavinKare

 Parle Agro

 Haldiram's

 Nirma

 Himalaya Healthcare Ltd

 Nestle India

 Cadbury India

2.3 Companies under Study

7|Page
 Hindustan Unilever

 ITC Ltd.

 Britannia

 Cadbury India

 Nestle India

2.4 Hindustan Unilever Limited

Fig 1 : Hindustan Unilever Limited Logo

2.4.1 About the Company

Hindustan Unilever Limited (HUL) is a British-Dutch manufacturing company

headquartered in Mumbai, India. Its products include foods, beverages, cleaning
agents, personal care products, water purifiers and consumer goods.

HUL was established in 1933 as Lever Brothers and following merger of constituent

groups in 1956 was renamed as Hindustan Lever Limited. The company was renamed
in June 2007 as "Hindustan Unilever Limited".

As of 2019 Hindustan Unilever portfolio had 35 product brands in 20 categories and

employs 18,000 employees with sales of Rs. 34,619 crores in 2017-18.

2.4.2 History

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1888 - Sunlight soap introduced in India.
1895 - Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai,
Kolkata, and Karachi.
1902 - Pears soap introduced in India.
1903 - Brooke Bond Red Label tea launched.
1905 - Lux flakes introduced.
1913 -Vim scouring powder introduced.
1914 - Vinolia soap launched in India.
1918 - Vanaspati introduced by Dutch margarine manufacturers like Van den Berghs,
Jurgens, Verschure Creameries, and Hartogs.
1922 - Rinso soap powder introduced.
1924 - Gibbs dental preparations launched.
1925 - Lever Brothers gets full control of North West Soap Company.
1926 - Hartogs registers Dalda Trademark.
1930 - Unilever is formed on January 1 through merger of Lever Brothers and
Margarine Unie, less than four years after William Hesketh Lever launched
Sunlight Soap in England, his newly-founded company, Lever Brothers,
started exporting the revolutionary laundry soap to India. By the time the
company merged with the Netherlands-based Margarine Unie in 1930 to form
Unilever, it had already carved a niche for itself in the Indian market.
Coincidentally, Margarine Unie also had a strong presence in India, to which
it exported Vanaspati (hydrogenated edible fat).
1931 - Vanaspati manufacturing company registered on November 27; Sewri factory
site bought. Vanaspati manufacture starts at Sewri.
1933 - Incorporated on 17th October, under the name of a Lever Brothers (India) Pvt.,
Ltd. (LBIL) was the wholly owned subsidiary of Unilever Ltd. London, UK;
Lever Brothers India Limited (LBIL) incorporated in India to manufacture
Soaps.
1934 - Soap manufacture begins at Sewri factory in October; North West Soap
Company's Garden Reach Factory, Kolkata rented and expanded to produce
Lever brands.

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1939 - Garden Reach Factory purchased outright; concentration on building up Dalda
Vanaspati as a brand.
1943 - Personal Products manufacture begins in India at Garden Reach Factory.
1944 - Reorganization of the three companies with common management but separate
marketing operations.
1947 - Pond’s Cold Cream launched.
1957 - Unilever Special Committee approves research activity by Hindustan
Unilever.
1958 - Research Unit starts functioning at Mumbai Factory.
1959 - Surf launched.
1962 - Formal Exports Department starts.
1963 - Head Office building at Backbay Reclamation, Mumbai opened.
1964 - Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad;
Sunsilk shampoo launched.
1965 - Signal toothpaste launched; Indian shareholding increases to 14%.
1966 - Lever's baby food, more new foods introduced; Nickel catalyst production
begins.
1967 - Hindustan Unilever Research Centre opens in Mumbai.
1969 - Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched
1971 - Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to
Unilever Special Committee - plan approved; Clinic shampoo launched.
1975 - Ten-year modernization plan for soaps and detergent plants; Jammu project
work begins; statutory price control on Vanaspati and baby foods withdrawn;
Close- up toothpaste launched.
1976 - Construction work of Haldia chemicals complex begins; Taloja chemicals unit
begins functioning.
1977 - On February synthetic detergents plant in Jammu was commissioned. Plant for
manufacture of linalool from betapinere, pheneyl ethyl alcohol and eaters
commissioned at Jammu.
1983- Fair & Lovely skin cream launched.
1986 - Lux toilet soap was launched.; Agri-products unit at Hyderabad starts

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 functioning - first range of hybrid seeds comes out; Khamgaon Soaps unit and
Yavatmal Personal Products unit start production.
1992- Lifebouy Personal and Breez soaps launched. Entered in dental product market
by introducing Pepsodent, Mentadent G etc.; A factory to manufacture leather
garments and other leather based products including wool-onleather garments
and wool-on-leather was set up in Chennai.; The Company undertook to set
up a large scale aquaculture centre at Tanjavur in Tamil Nadu for farming and
processing catfish for the U.S. markets in technical collaboration with FFDA.
The Company entered into joint venture agreement with Kimberly-Clark
Corporation, USA to promote a joint company `Kimberly-Clark Lever Ltd.'
with 50% equity participation by the company.
1994- In technical collaboration with Shinto Corporation, a subsidiary of Toya
Suisan, Japan, the Co. undertook to set up a Surimi (Fish Paste) project at an
initial cost of Rs.15 crores near Veraval in Gujarat State. The collaborators provided
100% buy-back guarantee for the output of this unit which seeks to upgrade
the hitherto wasted fishery resources of the country. The Company also
entered into an agreement with S C Johnson & Son USA, for manufacture and
sales of insecticides such as insect repellents, disinfectants and similar
products in India; The Company received the President's Award for
Outstanding performance in Agri Commodities for the year 1994-95;
1996 - The Company entered into joint venture S C Johnson & Son USA. The Joint
Venture named Lever Johnson Consumer products Pvt. Ltd.
1997 - Company received the Solvent Extractors' Association Award for being the
highest exporter of Rice Bran Extractions during 1996-97.
1998- The Directors of Hindustan Lever Limited at their meeting held on 16th March,
considered and approved the proposal for amalgamation of Ponds India
Limited with Hindustan Lever Limited. HLL's tea business is among the
biggest in the world; The Department of Agriculture and co-operation under
the ministry of agriculture has directed Lever Johnson (Consumer Products)
Ltd., a subsidiary of Hindustan Lever Limited, and Icon Household Products
Pvt. Ltd. to withdraw from the market, the mosquito mat repellent raid from

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 Domex on charges of having grossly violated the conditions of registration;
1998 - Group company, Pond's India Ltd, merges with HLL. HLL acquires Lakme
brand, factories and Lakme Ltd's 50% equity in Lakme Lever Ltd. HLL
acquires manufacturing rights of Kwality icecream. Appellate Authority of
Government of India absolves HLL of insider trading charges, made by SEBI
in 1997, in the BBLIL merger.
1999- The Company will be the largest e-tailer in the next two years; The company
has entered into a five-year wet lease agreement with the Hyderabad-based P
remier Explosives (PEL) to operate the latter's mushroom farms near
Hyderabad; The Company has launched a `ready to drink' (RTD) tea brand
Lipton Ice Tea in Hyderabad with lemon and mango flavours; The Company
has launched a new brand of toopaste – Aim; The Company has unveiled the c
ountry's first liquid detergent for daily washing needs Surf Excel Liquid
detergent in the Indian Market; The Company has re launched its tea brand,
Brooke Bond Red Label, with Assam Super Tasters; Hindustan Lever Ltd's
Pepsodent toothpaste has introduced games at McDonald's outlets;
2000– HLL has launched the new Fair & Lovely Fairness Soap -- which will help
make the skin fairer, safely and gently; Hindustan Lever's, Pond's Magic Deo
Talc, has been launched with a new enhanced deodorant protection; The
Company has launched International Rexona 24 HR Intensive, in India; The
Company has launched Pond's Light n' Fresh talc.
2001 - The Company has launched the new Lakme Sunscreen Lotion with ultraviolet
rays guard and Alpine Mint.
2002- The Board of Hindustan Lever Ltd (HLL) had approved the transfer of its
undertaking engaged in seeds business to its subsidiary Paras Extra Growth
Seeds Ltd; The company has signed an agreement with ICI India, a subsidiary
of ICI plc, UK, for sale of Nickel Catalyst business and Adhesives business, a
sub-unit of Specialty Chemicals Division of the company's Chemicals and
Agri operations for a consideration of Rs.21 crore and Rs 9 crores
respectively. 2003- Ties up with Pepsi for distribution, signs a memorandum of
understanding with Pepsi, to leverage each other’s strengths in distribution. The

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agreement provides Pepsi access to the HLL’s institutional accounts; Sells
GLUCOVITA, a brand in the glucose powder market, to Wipro; Unilever
hands over global marketing of Pears to HLL; Relaunches Surf Excel as a low-
foam detergent to target markets facing severe water crisis; Begins supplying
Unilever's tea bags;;
2003- HLL introduce iced tea in glass bottles; Brookefields food operations moved to
Mumbai.
2007 -Hindustan Lever Ltd. has appointed Mr. Ashok K. Gupta as Officer who is in
default for the purposes of Compliance with section 5(f) of the Companies
Act, 1956; Company name has been changed from Hindustan Lever Ltd to
Hindustan Unilever Ltd.
2009- Hindustan Unilever on Jan 26 said it has appointed R Sridhar as its Chief
Financial Officer by succeeding D Sundaram. Sridhar was serving as the
Vice-President, Finance and Controller for Unilever (Asia), Africa and
Central & Eastern Europe region. He joined HUL in 1989; Hindustan
Unilever decided to license 'Lakme' and 'Lever Ayush', brands to its
subsidiary, Lakme Lever Private Limited, for the Beauty and Wellness
services business.
2010- Hindustan Unilever said it exited from BPO firm Capgemini Business Services
India by selling its remaining 49% stake to IT consultancy firm Cap Gemini
SA. The India born, Manvinder Singh Banga who is better known as Vindi
Banga, will leave Unilever with service of 33years to the Company in May
this year; Fast Moving Consumer Goods major Hindustan Unilever Ltd
launched a new affordable variant of water purifier brand Pureit, known as
‘Pureit Compact’ with a price tag of Rs 1,000 in the Indian market; Hindustan
Unilever Ltd. (HUL) has stepped forward to divest part of its stake in
Hindustan Field Services (HFS).
2011- HUL comes up with ‘Bru World Café; With the objective of doubling the sales
by 2015, the FMCG major, Hindustan Unilever (HUL) is eyeing at strategies,
which includes re-launches, moves ahead with its plans, Hindustan Unilever
has relaunched its popular Lifebuoy talcum powder brand.

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 2012- HUL taps banks and telecom firms to penetrate deeper into rural India; HUL
to enter into agreement with Unilever to market Brylcreem in India;
Hindustan Unilever Limited (HUL) and entities of Piramal Realty (Ajay
Piramal Group) have signed an agreement for assignment of HUL's leasehold
rights of the land and building named Gulita situated at Worli Sea Face,
Mumbai.

2.4.3 Corporate Information

NAME DESIGNATION
Mr. Harish Manwani Chairman
Mr. Sanjiv Mehta CEO and Managing Director
Mr. P.B. Balaji Chief Financial Officer
Mr. Pradeep Banerjee Chief Executive-Supply Chain
Mr. Aditya Narayan Independent Director
Mr. S. Ramadorai Independent Director
Mr. O.P.Bhatt Independent Director
Dr. Sanjeev Misra Independent Director

Table 2.1 : Corporate information of HUL

2.5 ITC

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 Fig 2 : ITC Limited Logo
2.5.1 About the company
ITC Limited is an Indian multinational conglomerate company headquartered
in Kolkata, West Bengal. Established in 1910 as the 'Imperial Tobacco Company of
India Limited', the company was renamed as the 'India Tobacco Company Limited' in
1970 and later to 'I.T.C. Limited' in 1974. The dots in the name were removed in
September 1974 for the company to be renamed as 'ITC Limited' where 'ITC' would
no longer be an initialism. The company completed 100 years in 2010 and as of
2012–13, had an annual turnover of US$8.31 billion and a market capitalization of
US$52 billion. It employs over 30,000 people at more than 60 locations across India
and is part of Forbes 2000 list.

2.5.2 History
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco
Company of India Limited. As the Company's ownership progressively Indianised,
the name of the Company was changed from Imperial Tobacco Company of India
Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in
1974. In recognition of the Company's multi-business portfolio encompassing a wide
range of businesses - Fast Moving Consumer Goods comprising Foods, Personal
Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery Products,
Incense Sticks and Safety Matches, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business and Information Technology - the full stops in the

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Company's name were removed effective September 18, 2001. The Company now
stands rechristened 'ITC Limited, ‘where ‘ITC’ is today no longer an acronym or an
initialized form.
A Modest Beginning
The Company's beginnings were humble. A leased office on Radha Bazar Lane,
Kolkata, was the centre of the Company's existence. The Company celebrated its 16th
birthday on August 24, 1926, by purchasing the plot of land situated at 37,
Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000.
This decision of the Company was historic in more ways than one. It was to mark the
beginning of a long and eventful journey into India's future. The Company's
headquarter building, 'Virginia House', which came up on that plot of land two years
later, would go on to become one of Kolkata's most venerated landmarks.
1925: Packaging and Printing: Backward Integration.
Though the first six decades of the Company's existence were primarily devoted to
the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, ITC's
Packaging & Printing Business was set up in 1925 as a strategic backward integration
for ITC's Cigarettes business. It is today India's most sophisticated packaging house.
1975: Entry into the Hospitality Sector - A 'Welcom' Move.
The Seventies witnessed the beginnings of a corporate transformation that would
usher in momentous changes in the life of the Company. In 1975, the Company
launched its Hotels business with the acquisition of a hotel in Chennai which was
rechristened 'ITC-Welcomgroup Hotel Chola' (now renamed My Fortune, Chennai).
The objective of ITC's entry into the hotels business was rooted in the concept of
creating value for the nation. ITC chose the Hotels business for its potential to earn
high levels of foreign exchange, create tourism infrastructure and generate large scale
direct and indirect employment. Since then ITC's Hotels business has grown to
occupy a position of leadership, with over 100 owned and managed properties spread
across India under four brands namely, ITC Hotels - Luxury Collection,
WelcomHotels, Fortune Hotels and WelcomHeritage.

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1979: Paperboards & Specialty Papers -
Development of a Backward Area. In 1979, ITC entered the Paperboards business by
promoting ITC Bhadrachalam Paperboards Limited. Bhadrachalam Paperboards
amalgamated with the Company effective March 13, 2002 and became a Division of
the Company, Bhadrachalam Paperboards Division. In November 2002, this division
merged with the Company's Tribeni Tissues Division to form the Paperboards &
Specialty Papers Division. ITC's paperboards' technology, productivity, quality and
manufacturing processes are comparable to the best in the world. It has also made an
immense contribution to the development of Sarapaka, an economically backward
area in the state of Andhra Pradesh. It is directly involved in education,
environmental protection and community development. In 2004, ITC acquired the
paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO),
near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer
service with reduced lead time and a wider product range.
1985: Nepal Subsidiary - First Steps beyond National Borders
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint
venture. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its
name was changed to Surya Nepal Private Limited (Surya Nepal). In 2004, the
company diversified into manufacturing and exports of garments.
1990: Paperboards & Specialty Papers -
Consolidation and Expansion In 1990, ITC acquired Tribeni Tissues Limited, a
Specialty paper manufacturing company and a major supplier of tissue paper to the
cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD).
To harness strategic and operational synergies, TTD was merged with the
Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers
Division in November 2002.
1990: Agri Business -
Strengthening Farmer Linkages. Also in 1990, leveraging its agri-sourcing
competency, ITC set up the Agri Business Division for export of agri-commodities.
The Division is today one of India's largest exporters. ITC's unique and now widely
acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya

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Pradesh. Now it extends to 10 states covering over 4 million farmers. Also, through
the 'Choupal Pradarshan Khet' initiative, the agri services vertical has been focusing
on improving productivity of crops while deepening the relationship with the farming
community.
1995: Education & Stationery Products -
Offering the Greenest products ITC launched line of premium range of notebooks
under brand Paperkraft in 2002. To augment its offering and to reach a wider student
population, the Classmate range of notebooks was launched in 2003. Classmate over
the years has grown to become India's largest notebook brand and has also increased
its portfolio to occupy a greater share of the school bag.
Years 2007- 2009 saw the launch of Practical Books, Drawing Books, Geometry
Boxes, Pens and Pencils under the 'Classmate' brand. In 2008, ITC positioned the
business as the Education and Stationery Products Business and launched India's first
environment friendly premium business paper under the 'Paperkraft' Brand.
'Paperkraft' offers a diverse portfolio in the premium executive stationery and office
consumables segment. In 2010, Colour Crew was launched as a new brand of art
stationery.
2000: Lifestyle Retailing - Premium Offerings ITC also entered the Lifestyle
Retailing business with the Wills Sport range of international quality relaxed wear for
men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded
its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear
(2003). ITC also initiated a foray into the popular segment with its men's wear brand,
John Players, in 2002.
In 2006, Wills Lifestyle became title partner of the country's most premier fashion
event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers
and retailers as the single largest B-2-B platform for the Fashion Design industry. To
mark the occasion, ITC launched a special 'Wills Signature', taking the event forward
to consumers. In 2000, ITC spun off its information technology business into a
wholly owned subsidiary, ITC Infotech India Limited, to more aggressively pursue
emerging opportunities in this area. Today ITC Infotech is one of India's fastest
growing global IT and IT-enabled services companies and has established itself as a

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key player in offshore outsourcing, providing outsourced IT solutions and services to
leading global customers across key focus verticals - Banking Financial Services &
Insurance (BFSI), Consumer Packaged Goods (CPG), Retail, Manufacturing,
Engineering Services, Media & Entertainment, Travel, Hospitality, Life Sciences and
Transportation & Logistics.
2001: Branded Packaged Foods -
Delighting Millions of Households ITC's foray into the Foods business is an
outstanding example of successfully blending multiple internal competencies to
create a new driver of business growth. It began in August 2001 with the introduction
of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the
confectionery and staples segments with the launch of the brands mint-o and
Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the
introduction of Sunfeast as the Company entered the biscuits segment. ITC entered
the fast growing branded snacks category with Bingo! in 2007. In 2010, ITC launched
Sunfeast Yippee! to enter the Indian instant noodles market. In just over a decade, the
Foods business has grown to a significant size under seven distinctive brands, with an
enviable distribution reach, a rapidly growing market share and a solid market
standing.
2002: Agarbattis & Safety Matches -
Supporting the Small and Cottage Sector In 2002, ITC's philosophy of contributing to
enhancing the competitiveness of the entire value chain found yet another expression
in the Safety Matches initiative. ITC now markets popular safety matches brands like
iKno, Mangaldeep and Aim. ITC's foray into the marketing of Agarbattis (incense
sticks) in 2003 marked the manifestation of its partnership with the cottage sector.
Mangaldeep is a highly established national brand and is available across a range of
fragrances like Rose, Jasmine, Bouquet, Sandalwood and 'Fragrance of Temple'.
2005: Personal Care Products -
Expert Solutions for Discerning Consumers ITC entered the Personal Care Business
in 2005. In eight years, the Personal Care portfolio has grown under 'Essenza Di
Wills', 'Fiama Di Wills', 'Vivel' and 'Superia' brands which have received encouraging
consumer response and have been progressively extended nationally. In May 2013,

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the business expanded its product portfolio with the launch of Engage - one of India's
first ranges of 'couple deodorants'
2010: Expanding the Tobacco Portfolio
In 2010, ITC launched its handrolled cigar, Armenteros, in the Indian market.
Armenteros cigars are available exclusively at tobacco selling outlets in select hotels,
fine dining restaurants and exclusive clubs.

2.5.3 Corporate Information

Name Designation
Sanjiv Puri Chairman
Pradeep Vasant Dhobale ExecutiveDirector
Anil Baijal Non Executive Director
Serajul Haq Khan Non Executive Director
Sahibzada Syed Habib-ur-Rehman Non Executive Director
S B Mainak Non Executive Director
Pillappakkam Bahukutumbi Ramanujam Non Executive Director
Krishnamoorthy Vaidyanath Non Executive Director
Nakul Anand Executive Director
Kurush Noshir Grant Executive Director
Angara Venkata Girija Kumar Non Executive Director
Sunil Behari Mathur Non ExecutiveDirector
Robert Earl Lerwill Non ExecutiveDirector

Table 2.2 Corporate Information of ITC Limited

2.6 Nestle

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 Fig 3 Nestle Logo
2.6.1 About the company
NESTLÉ's relationship with India dates back to 1912, when it began trading as The
NESTLÉ Anglo-Swiss Condensed Milk Company (Export) Limited, importing and
selling finished products in the Indian market.
After India's independence in 1947, the economic policies of the Indian Government
emphasised the need for local production. NESTLÉ responded to India's aspirations
by forming a company in India and set up its first factory in 1961 at Moga, Punjab,
where the Government wanted NESTLÉ to develop the milk economy. Progress in
Moga required the introduction of NESTLÉ's Agricultural Services to educate, advise
and help the farmer in a variety of aspects. From increasing the milk yield of their
cows through improved dairy farming methods, to irrigation, scientific crop
management practices and helping with the procurement of bank loans.
NESTLÉ set up milk collection centres that would not only ensure prompt collection
and pay fair prices, but also instil amongst the community, a confidence in the dairy
business. Progress involved the creation of prosperity on an on-going and sustainable
basis that has resulted in not just the transformation of Moga into a prosperous and
vibrant milk district today, but a thriving hub of industrial activity, as well. 
NESTLÉ has been a partner in India's growth for over a century now and has built a
very special relationship of trust and commitment with the people of India. The
Company's activities in India have facilitated direct and indirect employment and

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provides livelihood to about one million people including farmers, suppliers of
packaging materials, services and other goods.
The Company continuously focuses its efforts to better understand the changing
lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition,
Health and Wellness through its product offerings. The culture of innovation and
renovation within the Company and access to the NESTLÉ Group's proprietary
technology/Brands expertise and the extensive centralized Research and Development
facilities gives it a distinct advantage in these efforts. It helps the Company to create
value that can be sustained over the long term by offering consumers a wide variety
of high quality, safe food products at affordable prices.
NESTLÉ India manufactures products of truly international quality under
internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR, KIT
KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has
also introduced products of daily consumption and use such as NESTLÉ Milk,
NESTLÉ SLIM Milk, NESTLÉ Dahi and NESTLÉ Jeera Raita.
NESTLÉ India is a responsible organisation and facilitates initiatives that help to
improve the quality of life in the communities where it operates.

2.6.2 Milestones achieved

 CNBC Awaaz Consumer Awards has honoured Nescafe as the most preferred
coffee brand. 
 Business India has rated Nestlé India as No.1 on Return On Capital Employed
amongst Super 100 companies. 
 In 2006–2007 Nestlé India was awarded the ‘Best Exporter of Instant Coffee’,
‘Highest Exporter to Russia and CIS”, ‘Highest Exporter to Far East Countries’.
 In 2009 Nestle India Board approved Proposal To acquire Healthcare Nutrition
Business of Specialist Foods. 
 In 2010 Nestlé Inaugurates New Culinary Plant at Nanjangud. 
 2010–12 CNBC Awaaz Consumer Awards Business India has rated Nestle India
as No.1 on Return on Capital Employed amongst Super 100 companies

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 2.6.3 Corporate Information

NAME DESIGNATION
Mr. Antonio Helio Waszyk Chairman and Non-Executive Director
Mr. Etinne Benet Managing Director
Mr. Shobinder Duggal Director-Finance & control and CFO
Mr. Aristides Protonotarios Director - Technical
Mr. Michael W.O. Garrett Non-Executive and Independent Director
Mr. R. V. Kanoria Non-Executive and Independent Director
Mr. Ashok Kumar Mahindra Non-Executive and Independent Director
Mr. Ravinder Narain Non-Executive and Independent Director
Dr. Swati A. Piramal Non-Executive and Independent Director

Table 2.3 Corporate Information of Nestle

2.7 Britannia

Fig 4 Britannia Logo

2.7.1 About the company

Britannia Industries Limited is an Indian food-products corporation. Founded in 1892
and headquartered in Kolkata, it is one of India's oldest existing companies. It is now
part of the Wadia Group headed by Nusli Wadia. The company sells

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its Britannia and Tiger brands of biscuits, breads and dairy products throughout India
and in more than 60 countries across the world. Beginning with the circumstances of
its takeover by the Wadia group in the early 1990s, the company has been mired in
several controversies connected to its management. However, it enjoys a large market
share and is exceedingly profitable.

2.7.2 History
1918 - The Company was incorporated on 21st March, as a public limited company
under the Indian Companies Act, VII of 1913. The Company Manufacture
bakery and soya bean products, export of cashew Kernels marine products,
general merchandise items and computer software.
1921 - The Company obtained a priority of Certificate and imported new machinery
thereby becoming the first biscuit company in India to install and run a gas
oven plant.
1924 - A new factory was established at Kasara Pier Road in Mumbai. In the same
year, the Company became a subsidiary of Peek, Frean & Co. Ltd., U.K., a
leading biscuit manufacturing company, and further strengthened its position
by expanding the factories at Calcutta and Mumbai.
1952 - The Calcutta Factory was shifted from Dum Dum to spacious grounds at
Taratola Road in the suburbs of Calcutta. During the same year automatic
plants were installed there and later in Mumbai in 1954.
1954 - The development of high quality sliced and wrapped bread in India was
pioneered by the Company and was first manufactured at Delhi.
1961 - Manufacture of bread was started in Mumbai and a new bread bakery was set
up at Delhi in 1965.
1976 - Britannia bread was introduced in Calcutta and Chennai.
1979 - With effect from 3rd October, the name of the Company was changed from the
Britannia Biscuit Co., Ltd., to Britannia Industries Ltd.
1980 - The Company signed a 10 year technical collaboration agreement with Nebico
Pvt. Ltd., Nepal, for the supply of know-how relating to manufacturing,
packaging and marketing of biscuits and selection of plant and machinery.

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1986 - The turnover increased by 19.4% over the the previous year to Rs 192.15
crores. Sales of biscuits, in terms of volume, registered a satisfactory growth.
Good Day, a new biscuit launched during the year met with good market
response. Production of bread at Delhi unit was adversely affected due to
launched pure refined cooking oil under the brand name of Vital.
1989 - The Company launched new brand of biscuit, namely, `CIRCUT'. Another
brand PURE MAGIC was extended nationally and posta badam was added to
GOOD DAY range of biscuits. Bread production and affected for some time
at Delhi factory due to industrial unrest.
1990 - Two new brands of biscuits,Elaichi Creamand Petit Beurre were launched.
Also, a new cashew badam variant of the brand Milk Bikis and brand
extension of Pure magic biscuit Vanilla cream were launched. Fruit bread was
launched in Delhi and was well received.
1991 - The Company launched two new specialty brands viz., Britannia milk bread
and Britannia brown bread in Delhi and extended nationally its main brands
Petit Beurre and elaichi cream.The Company proposed to invest in the equity
capital of Britco Company Pvt. Ltd., a joint venture with JMRPCO Ltd.,
Hongkong, for manufacture of beverage bases and essence for Coca Cola,
Fanta & Sprite and to export processed snack foods.
1992 - The Company launched a new brand of biscuit, namely `Little Hearts' which
carved a niche in the market.
1993 - The Company launched new brand of biscuit, namely, `Fifty-Fifty'. Bread
market remained depressed. To revive the market, the Company launched a
speciality brand viz. `Premium Bake' in both Delhi and Mumbai. During the
year, the company has started exporting Basmati Rice under the name
`Britannia Indian Pearl'.
1994 - During the year, the bakery division launched `Bakers Choice' a sweet biscuit
and `Thinlite' a light semi-sweet biscuit aimed at fitness concious consumers.
1995 - Under the `Pure Magics' Umbrella, the company launched a new sandwich
cream biscuit with two-in-one flavour viz. double cream and this was well
received in the market. In the cake market, under the premium segment, the

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 company launched with Groupe Danone's technological input a Swissroll
Cake Mini Roule which was also met with good response.
1996 - Mariegold biscuits registered quantum growth in volumes and milk bikis milk
cream launched during the year was well received.
1997 - The Company launched `Tiger' range of biscuits for mass market category,
`Jim-Jam' and ` `Chekkers' in the premium segment. The Company also
launched Butter in Delhi during the year.  Britannia Industries Ltd (BIL)
will shortly enter the cheese and milk products market with an alliance
proposed between itself and the Mumbai-based Dynamix Dairy Ltd.
1998 - The company has launched Half/Half, a soft cake filled with cream in two
variants, chocolate-vanilla and vanilla-orange. Half/Half comes in a twin-cake
pack (Rs.6) and a tray pack containing five cakes. Britannia Industries Ltd has
launched a festival offer for Britannia Dairy Whitener in Kerala.
1999 - Britannia Industries Ltd has rolled out its flavoured milk brand `Zip-Sip' in
tetrapaks. Zip-Sip has been launched in Mumbai and some markets in the
South. In a move meant to sharply increase its India-profile, `knowledge
major' Encyclopaedia Britannica Inc plans to come out - for the first time -
with India and south Asia-specific volumes targeted at school children as well
as institutions and the general `knowledgeseeker'.
2000 - Britannia Industries, in its second coming in the Indian dairy market under the
` Milkman' brand, is introducing a range of products many in desi flavours to
woo the Indian consumer.The Company has launched Vita Mariegold, a semi-
sweet biscuit which reportedly has 10 essential vitamins, milk protein and 58
cereals. Britannia's Milk Bikis Funland biscuits an innovative extension of the
Milk Bikis brand. Britannia Industries has launched Britannia Milkman
Butter, a product under the Milkman brand. The Company has lauched two
new dairy products Milkman Cold Coffee and Milkman Sweet lassi.Britannia
Industries Ltd. has introduced a new range of traditional namkeens called
Britannia Snaz in Mumbai.
2001 - Britannia Industries has launched Britannia Milkman Milk in Delhi.
2002 -Britannia's new COO is Nikhil Sen.

26 | P a g e
2003 - Board of Directors of Britannia Industries Ltd has passed a resolution to
terminate the employment of Mr S K Alagh as Managing Director of the
company with immediate effect. Britannia New Zealand Foods, a joint venture
of Britannia Industries and Fonterra Co-operative group of New Zealand has
launched Britannia MilkMan fresh milk.
2004 -Britannia accorded the status of being a 'Superbrand' Volumes cross
3,00,000 tons of biscuits . Good Day adds a new variant - Choconut - in its
range
2005 -Britannia New Zealand launches health drink for adult. Re-birth of Tiger -
'Swasth Khao, Tiger Ban Jao' becomes the popular chant. Britannia launched
'Greetings' range of premium assorted gift packs.
2006 -Britannia Industries Ltd has forged a strategic alliance with CCD Daily Bread
Pvt Ltd a Bangalore based Company engaged in manufacturing and retailing
of premium breads, cakes and high end ready to eat foods and snacks.
Britannia re-launched NutriChoice Hi-Fibre Digestive biscuits in an
international large sized biscuit pack.
2007 -Britannia NutriChoice SugarOut range introduced - 1st of its kind of biscuits to
be launched in India with No Added Sugar (Variants - Chocolate Cream,
Orange Cream, and Lifetime)
2008 -Britannia NutriChoice 5 Grain biscuits launched - Biscuits with the goodness
of 5 health Cereals, and sweetened with Natural honey. Britannia Nutrichoice
promised consumers Bhook Bhagao, Kuch Healthy Khao. Britannia launched
Iron fortified 'Tiger Banana' biscuits, 'Good Day Classic Cookies', Low Fat
Dahi and renovated 'MarieGold'.
2009 -Britannia NutriChoice Nature Spice Crackers launched - Your favorite Cream
Crackers, now made even more exciting with the addition of Sabut Ajwain
and Jeera spices.
2010 -Britannia NutriChoice launches a New Year pack - the Health Starter Kit
created for everyone who makes New Year resolutions and doesn’t follow.
The Health Starter Kit contains 1 pack each of NutriChoice Hi-Fiber
Digestive, NutriChoice 5 Grain, NutriChoice Nature Spice Cracker bundled

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 together with a Fit Sip Sipper and a fitness chart.
2011 -Britannia received the Most Respected Company Award 2011 from
Businessworld.  Bourbon received the Most Popular Confectionery Product
Preferred by Youth (Biscuit) Award.  BRITANNIA was honored with
`CREATIVE HR PRACTICES AWARD' by Employer Branding Institute,
India, on the occasion of 6th Employer Branding Awards ceremony held on
the 10th of December 2011 at Hotel Taj Deccan, Hyderabad. 2012 -IMC
Ramakrishna Bajaj National Quality Award 2011 was awarded to Britannia
Industries Limited.

2.7.3 Corporate Information

Name Designation
Nusli N Wadia Chairman
S S Kelkar Director
Nimesh N Kampani Director
Keki Dadiseth Director
Nasser Munjee Director
Vijay L Kelkar Director
A K Hirjee Director
Avijit Deb Director
Jeh N Wadia Director

Ajai Puri Director

Ness N Wadia Director

Varun Berry Executive Director

Table 2.4 Corporate Information of Britannia
2.8 Cadbury

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 Fig 5 Cadbury Logo
2.8.1 About the company
Cadbury, formerly Cadbury's and Cadbury Schweppes, is a
British multinational confectionery company wholly owned by Mondelez
International (originally Kraft Foods) since 2010. It is the second largest
confectionery brand in the world after Mars. Cadbury is internationally headquartered
in Uxbridge, west London, and operates in more than 50 countries worldwide. It is
known for its Dairy Milk chocolate, the Creme Egg and Roses selection box, and
many other confectionery products. One of the best-known British brands, in
2013 The Daily Telegraph named Cadbury among Britain's most successful exports.

Cadbury was established in Birmingham, England in 1824, by John Cadbury who

sold tea, coffee and drinking chocolate. Cadbury developed the business with his
brother Benjamin, followed by his sons Richard and George. George developed
the Bournville estate, a model village designed to give the company's workers
improved living conditions. Dairy Milk chocolate, introduced in 1905, used a higher
proportion of milk within the recipe compared with rival products. By 1914, the
chocolate was the company's best-selling product. Cadbury,
alongside Rowntree's and Fry, were the big three British confectionery manufacturers
throughout much of the nineteenth and twentieth centuries.

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2.8.2 History
1948 - The Company was incorporated on 19th July, as a private limited company
under the name of Cadbury-Fry (India) Private Limited and commences
business soon thereafter. Manufacturing facilities were set up gradually.
1964- The Company undertook at its own cost and responsibility the development of
cocoa growing in the country. A specialist cocoa advisory service was created.
A cocoa research centre was also created together with seeding nurseries and
distribution centers; Through its subsidiary, Induri Farm Ltd., the Company
had set up facilities near Pune to breed cattle that would give improved yield
of milk at economic feeding costs.
1967 - Cadbury introduced the `Five Star and Gems' chocolates in 1967 and 1968
respectively.
1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt. Ltd., to
Cadbury India Pvt. Ltd., on 7th June. It was converted into a public limited
company on 11th June. An agreement was entered into with Cadbury
Overseas Ltd., (COL) U.K., on 3rd May, for technical services concerning
new products and processes.
1979 - Industrial license for the apple juice project was received and the project was
commissioned on 16th September, 1980.
1981 - The Company received a certificate to manufacture 2,200 tonnes of chocolates
at Indori.
1982 - On 17th December, the name of the Company was changed from Cadbury
India Ltd., to Hindustan Cocoa Products Ltd., consequent to 60% of its shares
being held by the Indian public.
1984 - The company launched its dairy milk chocolate, which has now become the
flagship brand of the company. A diversification into the ice-cream market in
1989 by introducing Dollops was undertaken in a strategic alliance with
Brooke Bond India (a subsidiary of Unilever), which was sold off to the latter
in 1992.
1985 - The Company explored the possibilities of entering into the business of
software export.

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1987 - In chocolate group, the Company launched new products such as `Crackle',
`Orange', `Strawberry Krisp', `Mello', and `Wildlife bar'. For every `Wildlife
bar' sold, the Company makes a contribution to the Wildlife fund, as per an
agreement entered into with the fund. In the foods drinks, the Company
launched `Choc O Cheer.
1988 - The Chocolate division introduced some more new products to upper and
lower ends of the market. In the food drinks area, a higher protein drink under
the brand name `Enriche' was successfully introduced. The Company
diversified into ice-cream market and a product under the brand name
`Dollops' was test marketed in Hyderabad on New Year’s Day. In order to
meet the growing demand for the Company's food drink products, it was
decided to establish a new factory at Malanpur, Bhind District in the State of
Madhya Pradesh.
1989 - The product of the food drinks was marketed under the brand name `Enriche'.
1993 - With effect from 18th July, the Company's Ice Cream business comprising
manufacturing arrangements with two well known brands Dollops & Lopstop
was transferred to Brooke Bond India Ltd. for a consideration of Rs 1062.65
lakhs and an assurance from the company to Brooke Bond that they would not
make or sell Ice creams for a period of 8 years.
1995 - `Perk' was launched from its Malanpur plant. Towards the end of 1996, the
Company has launched a new range of sugar confectionery, `Googly', a
trangy, fizzy fruit flavoured candy in Chennai under the brand name `Trebor'.
1997- Cadbury India Ltd has launched Truffle - flavored soft centre molded chocolate
bar. The product was launched in Calcutta, Mumbai and New Delhi during
October with subsequent launches planned in Bangalore, Chennai, Hyderabad
and other mini-metros in a phasedmanner in November; Cadbury India is
launching its well-known beverage Bournvita in sachets.
1998- Cadbury's launches Picnic: Cadbury India Ltd on March 23 announced the
launch of Picnic in Karnataka. It is being made at a specially imported new
line in the state-of-the-art factory near Gwalior; Cadbury India is celebrating
its golden jubilee in India. To commemorate the occasion, the company has

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 organized a series of events for the employees and business associates in
Mumbai, the branch offices and plant sites.
1999 The Board of directors of Campco have approved the proposal to enter into an
agreement with Cadbury.
2000- Cadbury India Ltd has launched a new product, `Nice Crem', under its sugar
confectioner business. The sugar candy has been launched only in Mumbai;
During 1994-95, Cadbury's entire ranges of products were introduced in
Bangladesh. Its new wafer product, Perk, was launched in Sep.'95, in
Mumbai, Delhi, Calcutta, Pune and Goa. The company launched a new range of
sugar confectionery, Googly a tangy, fizzy, fruit flavored candy in Tamil Nadu
under the Trebor umbrella brand name.
2001- Cadbury's has introduced Perk Slims, a slimmer version of the wafe; The
Company has relaunched Perk, its chocolate-coated wafer, it has four new
layers covered in Cadbury Dairy Milk Chocolate; Cadbury India Ltd. has
launched a range of gift packs for Diwali.
2002 - The Company has launched Sweet Nothings range of gift packs for Valentine
Day.
2003 -Cadbury India launches Cadbury's Heroes, which is a blend of company's
leading brands. Adams will now be a part of the mass markets division of
Cadbury India.
2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk
2007- Cadbury India has rolled out a wafer-based chocolate called 'Ulta Perk'
nationally. 'Ulta Perk' has been test marketed in southern states like Tamil
Nadu and Karnataka for over 6 months and is now being launched in other
parts of India. The product is targeted towards teenagers and youth. 'Ulta Perk'
will be the second product offering from Cadbury in the chocolate-wafer
segment, after the 'Perk' brand.

2.8.3 Corporate Information

Name Designation
C Y Pal Chairman / Chair Person

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Harsh Mariwala Non ExecutiveDirector
Suresh Talwar Non Executive Director
V Chandramouli Executive Director
Jaiboy Phillips Executive Director
Sunil Sethi Executive Director
Anand Kripalu ManagingDirector
Radhakrishnan Menon Non Executive Director
Atul Bhatia Executive Director
Rajesh Garg Executive Director
Rajesh Ramanathan Executive Director
Narayan Sundararaman Executive Director
Table 2.5 Corporate Information of Cadbury

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 CHAPTER-3
REVIEW OF LITERATURE
AND
RESEARCH DESIGN

3.1 LITERATURE REVIEW:

It has been universally acknowledged that no work can be meaningfully conceived

and soundly accomplished without critically studying what already exists in relation
to it. A research involves in depth knowledge of the key factors which are important
to the study.

There is a limited literature available on emotion aspects of Indian consumers in

FMCG sector. But worldwide lots of studies have been done highlighting the role of
emotions in FMCG purchases. Consoli (2010) stressed that choices and purchase
decisions are the result of a careful analysis of emotions. Damasio (1995) emphasized
that emotion is a vital aspect of all decisions. Leahy (2008) found that brand loyalty

34 | P a g e
exists in FMCG markets for both cognitive and emotional reasons.Nejati et. al. (2011)
in their study findings concluded that the ecological purchase intentions are affected
by subjective norms of consumers, but relationship between consumer attitudes
towards environment and ecological purchase intentions was found to be
insignificant.

Pandey et.al (2012) stressed that emotions can be used as a strategic initiative for
making it as successful brand. It was found that function and rational appeal can be
understood to explain the concern of consumer for its purchase, but the emotional
appeal is the most effective way to create a positive attitude for the consumers. It has
also been revealed that customers develop emotional attachment to a brand in a
cumulative way, with confidence as the foundation of a brand relationship and
passion as the pinnacle.Jayswal& Shah (2012)emphasized that different appeals help
to enhance effectiveness of advertisements that evokes some emotional reaction in
viewer’s mind.

Ching (2010) found that consumers feel greater enjoyment and enhanced liking for
the marketer when there is a close match between consumers' emotional receptivity
and the level of emotional intensity displayed by the marketer. Hansen et.al (2006)
suggested that emotions may play a role in its own right, quite different from the way
in which they have been considered in traditional consumer choice behavior theory.
Chernatony& Leslie (2004) stressed that that organizational buyers can be influenced
by both rational and emotional brand values and that B2B brands can easily overcome
functional capabilities in order to create an emotional connection with buyers.

Bradley & Lang (2000) proposed that emotions are better understood as behavioral
complexes, organizations of responses that include 3 broad output systems: (1) overt
acts and secondary behaviors; (2) emotional language, and (3) physiological
reactions. Damasio (2001) highlighted that the decisions are choices mainly
emotional. Goleman (1996) noted the success of people without a great cognitive
intelligence of logical-mathematical type but with a strong emotional sensitivity.
Allen and Meta (2000) emphasized that fear appeals are useful to get individual to
think or act in a certain way. The study results highlighted that fear act as a great

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influencer as long as individual think they are capable to protect themselves.

Yoo and MacInnis (2005) concluded that the brand attitude formation process
depends on whether ads use an emotional or information execution format. Piron
(1993) found that consumers’ decisions in impulsive purchases can be differentiated
from consumers’ who make planned and unplanned purchases on the basis of their
experiencing emotional reactions.Boulding et.al (1993) suggested that the linkage
between anticipated emotions and the actual emotions experienced is limited by the
scenariobased methodologies.

Krishnan and Olshavsky (1995) proposed and partially tested a model of satisfaction
that resolves emotions into consumption-based and evaluation-based responses.
Martin et.al (2006) recognised the role of emotions in analysing customer satisfaction
and future behavioral intention. The study results found that emotionally‐based
satisfaction as a better predictor of future behavioral intention than cognitive
measures of satisfaction. Laros&Steenkamp (2005) concluded that despite the
different ways to measure emotions, positive and negative affect are frequently
employed as general dimensions of emotions.

Hanzaee &Baghi (2011) analyze the hedonic and utilitarian dimensions of cell phones
and laptops. The study results found that cell phones purchase intention is highly
influenced by hedonic benefits and positive or negative promotion emotions. But in
case of laptops, it was different and concluded that considering the utilitarian benefits,
these two products have no significant differences for consumers. Lee &Yi (2008) in
their study on shopping emotions found that arousal and perceived risk correlated
strongly with impulsive buying behavior, whereas consumers’ experienced pleasure
and arousal significantly predicted their impulsive buying intention.

Deshpande, Gaddi&Patil (2014) suggested Indian retailers to increase their

positioning by building their own brands. The study stressed upon the formation of a
sound retail brand strategy. Kemp et.al (2012) highlighted that the process by which
individuals engage in consumption to manage their emotions, and examines the
efficacy of an advertisement for a hedonic product that uses affect influenced
language to stimulate such a process.

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Khan et.al. (2010) concluded that anger makes individuals less likely to defer choice,
makes them more satisfied with their decisions, and less likely to compromise
resulting in more goal oriented actions.Mishra & Mishra (2015) focused on the role
played by planned visual merchandising in generating sales. The study highlighted
issues in store layout and provided valuable feedback to the retailers for effective
selling. Mano (1999) proposed that considerations should be given on the basis of
differences of arousal in postulating emotions.

3.2 NEED FOR THE STUDY:

Currently the target audience is bombarded and filled with lot of information which
keeps them distracted all the time. Now the span time human being is less than 6
seconds so what are the ways you can make a impression on your target audience?
Keys to make a emotional connect with a brand so that if customers are distracted
then also they pay attention to the communications and creatives of the brand. Hence,
this study is important.

3.3 OBJECTIVES:

The objective of this study is to understand the role of emotions in consumer purchase
decisions especially in Fast Moving Consumer Goods industry. The study covers
following wide objectives:
1. To study the impact of emotions in FMCG purchases.
2. To study if emotions emotions influence the purchasing decisions of a customer.

3.4 SCOPE OF THE STUDY:

The study is relevant to the present scenario as it gives awareness about the role of
emotions in purchasing decisions of a customer. In todays scenario, we see that

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emotions play an important role in customers purchasing decisions. Competitors try
to win over their competitors by celebrity endorsements and other emotional
strategies. Therefore, this study analysis if emotions influence the decisions of a
customer.

3.5 METHODOLOGY:

Data collection is related to capture quality information from different sources and
translate the collected rich data and analyze the data. It is a descriptive study using the
primary data and secondary data.

3.6 SAMPLING:

For studying the influence of emotions on customer purchasing pattern,

samples were collected in the form of google forms from Kalyan Nagar and
few others randomly from other places in Bangalore. The sampling techniques
used Random and Convenience type of Sampling and the sample Size is 50
respondents

3.7 DATA COLLECTION:

 Primary Data:
It is primary data, for specific purpose of research project. For this project, I have
used the common research instrument or tool of a Structured Questionnaire.

 Secondary Data:
It is collected to add the value to the primary data. This may be used to collect
necessary data and records by different websites, magazines, annual reports,
journals, reference books and newspapers etc.

3.8 PLAN OF ANALYSIS:

The objectives of the research are studied with respect to purchasing pattern of
customers with respect to FMCG products in Bangalore. Therefore, it is firstly
important to understand about the various FMCG companies. The analysis was made

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by looking into the answers given by the respondents answering to the questions on
the questionnaire regarding the role of emotions in purchasing decisions.

3.9 LIMITATIONS:

There are few limitations of the study. Firstly, due to the shortage of time, a detailed
study on the topic could not be conducted. Also, the study is limited to Bangalore city
only.
The accuracy of the study depends on the data which has been collected through a
survey. Many of the respondents may not give accurate information.
Though I have spent a lot of time collecting information for the project, it is not fool
proof in nature.

3.10 CHAPTER SCHEME:

Chapter one: Introduction

Chapter two: profile of the organizations/ respondents
Chapter three: Review of Literature and Research Design
Chapter four: Data Analysis and Interpretation
Chapter five: Summary of Findings, Conclusions and Suggestions.

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 Chapter 4

DATA ANALYSIS
AND
INTERPRETATION

As part of the study, I had conducted a survey among 50 respondents from Bangalore
to determine the influence of emotions on purchasing pattern of the customers. This
chapter presents an analysis of the findings through the survey.

Questions :

1. What age group do you fall into?

Table 4.1: Age of respondents

CATEGORIES TOTAL NO.

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10-20 6
20-30 38
30-40 2
40 and above 4

8% 12%
4%

20-30
20-30
30-40
40 and above

76%

Figure 6: Age of respondents

INTERPRETATION:

As per the data collected, 76% of the respondents are between the age group 20-30,
12%belong to 10-20, 8% fall between 40 and above, but the remaining 4% are
between 30-40. This shows that majority of the online shoppers are between 20-30
and are of the younger generation.

2. What do you do currently?

Table 4.2: Occupation of respondents

CATEGORIES TOTAL NO.

Business 6
Service 8
Student 35
Unemployed 1

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 2%
12%

16%
Business
Service
Student
Unemployed

70%

Figure 7: Occupation of respondents

INTERPRETATION:

As per the survey, 70% of the respondents are students and 16% are into service, 12%
into business and the remaining are unemployed. This shows that students are the
most frequent online shoppers as they are powerful internet users.

3. Are you a brand loyal customer ?

Table 4.3: Category of customer

CATEGORIES TOTAL NO
Yes 20
No 34
Maybe 6

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 10%

33%

Yes
No
Maybe

57%

Figure 8: Category of customer

INTERPRETATION:

As per the survey, 57% of the respondents are not brad loyal customers, 33% of them
are brand loyal and 10% are not sure.. This shows that majority of them are not loyal
to a particular brand and hence can be influenced by competitors.

4. Which of the following brands do you prefer?

Table 4.4: Preferred FMCG brand

CATEGORIES TOTAL NO

Hindustan Unilever 18

ITC 20

Nestle 8

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Britannia 4

Cadbury 10

17%

30%

7%
Hindustan Unilever
ITC
Nestle
Britannia
Cadbury
13%

33%

Figure 9: Preferred FMCG brand

INTERPRETATION:

As per the survey, it is found that majority of the respondents prefer ITC, followed by
HUL, Cadbury, Nestle and Britannia. Therefore, ITC and HUL are the most preferred
FMCG brands.

5. What is the single most important reason that you choose a particular
product?

Table 4.5: Reasons for choosing a particular product

CATEGORIES TOTAL NO.

Brand image 27
Price/Cost 14
Quality & Quantity 7
Other 2

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 4%

14%

Brand image
Price/Cost
Quality & Quantity
54% Other

28%

Figure 10: Reasons for choosing a particular product

INTERPRETATION:

As per the survey, it is observed that majority choose a particular product based on
brand image.The next important factor is price of the product followed by the quality
and quantity of the product.

6. Do offers and promotional activity influence your purchasing

decisions?

Table 4.6: Influence of offers on purchase decisions

CATEGORIES TOTAL NO.

Yes 38
No 11
Maybe 1

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 2%

22%

Yes
No
Maybe

76%

Figure 11: Influence of offers on purchase decisions

INTERPRETATION:

As per the survey, 76% of the respondents feel that offers and promotional activity
influence purchasing decisions while only 22% of them feel that it does not influence
purchase decisions. Therefore, one of the factors which influence a customers
purchase decisions is promotional activity.

7. How often is your purchase decision based on celebrity endorsement?

Table 4.7: Influence of celebrity endorsement on purchase decisions

CATEGORIES TOTAL NO.

Always 6
Often 12
Sometimes 22
Rarely 7
Never 3

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 6%
12%

14%

Always
Often
24%
Sometimes
Rarely
Never

44%

Figure 12: Influence of celebrity endorsement on purchase decisions

INTERPRETATION:

As per the survey, we can observe that majority of the respondents are influenced by
celebrity endorsements. Therefore, brands should use this as an important part of their
marketing strategy.

8. “Emotions play an important role in purchase decisions” Rate this

statement

Table 4.8: Role of emotions in purchasing decisions

CATEGORIES TOTAL NO.

1 star (Strongly disagree) 3
2 star (Disagree) 10
3 star (Neutral) 14
4star (Agree) 16
5 star (Strongly agree) 7

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 6%
14%

20%

1 star (Strongly disagree)

2 star (Disagree)
3 star (Neutral)
4star (Agree)
5 star (Strongly agree)
32%

28%

Figure 13: Role of emotions in purchasing decisions

INTERPRETATION:

As per the survey, 46% of the respondents feel that emotions influence the purchasing
decision of the customers and only 26% of the respondents feel that emotions do not
influence purchasing decision.

9. “Prestige and Social Status plays an important role in purchase

decisions” Rate this statement

Table 4.9: Role of prestige in purchasing decisions

CATEGORIES TOTAL NO.
1 star (Strongly disagree) 8
2 star (Disagree) 11
3 star (Neutral) 3
4star (Agree) 18
5 star (Strongly agree) 10

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 16%
20%

1 star (Strongly disagree)

2 star (Disagree)
3 star (Neutral)
22% 4star (Agree)
5 star (Strongly agree)

36%
6%

Figure 14: Role of prestige in purchasing decisions

INTERPRETATION:

As per the survey, majority of the respondents ie. 56% feel that prestige and social
status play an important role in purchase decisions and only 38% of them feel that it
does not play an important role.

10. Do you think peer group and family influence your purchasing
decisions?

Table 4.10: Role of peer group in purchasing decisions

CATEGORIES TOTAL NO.

Yes 39
No 10
Maybe 1

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 2%

20%

Yes
No
Maybe

78%

Figure 15: Role of peer group in purchasing decisions

INTERPRETATION:

As per the survey, it is observed that 78% of the respondents feel that their family and
peer group play an important role in purchase decisions and only 20% of the
respondents feel that they do not play an important role.

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 Chapter 5
Summary of Findings, Suggestions & Conclusion

5.1 FINDINGS:

Emotions are ubiquitous throughout marketing. They influence information

processing, mediate responses to persuasive appeals, measure the effects of marketing
stimuli, initiate goal setting, enact goal-directed behaviors, and serve as ends and
measures of consumer welfare. Yet, we are only beginning to understand the role of
emotions in marketing. In comparison to information processing and behavioral
decision research, we know much less about the role of emotions in marketing
behavior. Much of what we do know is confined to consumer behavior, as opposed to
the behavior of salespeople or marketing managers. The present study entitled
“INFLUENCE OF EMOTIONS ON CONSUMER BUYING BEHAVIOUR: A

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STUDY ON FMCG INDUSTRY” is an attempt to investigate the role of emotions on
FMCG purchases. The study highlighted the relevant emotions in consumer
purchases of FMCG products.

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods
(CPG), are products that are sold quickly at relatively low cost. Though the absolute
profit made on FMCG products is relatively small, they generally sell in large
quantities, so the cumulative profit on such products can be large.Some of the major
FMCG brands are Hindustan Unilever Limited, ITC, Britannia, Cadbury and Nestle

As part of the study, a survey was conducted on 50 respondents from Bangalore city.
The respondents were selected based on convenient sampling and the survey were
carried out using Google forms. The major findings of the study have been
highlighted below.

 Majority of the respondents of the survey are are in the age group 20-30.

 Most of the respondents are not loyal to a particular brand and hence can be
influenced by competitors.

 Through the study, it is found that majority of the respondents prefer ITC,
followed by HUL, Cadbury, Nestle and Britannia.

 It is observed that majority choose a particular product based on brand

image.The next important factor is price of the product followed by the quality
and quantity of the product.

 One of the factors which influence a customers purchase decisions is offers and
promotional activity.

 Celebrity endorsements, family and peer group and prestige and social status are
some of the other factors which influence purchasing behaviour.

5.2 SUGGESTIONS

Despite millions of years of evolution and the development of abstract thought and
critical thinking, humans still rely heavily on emotions when making decisions.

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Regardless of all a customers data analysis and that awesome pros/cons list they
made, their decision to buy  is largely influenced by one of the more primal brain
areas and less about by what makes us so smart. Because of this, as marketers,
companies need to be masters of connecting emotionally with customers and clients.
Some of the suggestions companies can implement to influence a customers decision
making are explained below.

 Brands should focus on attracting more customers through various promotional

activities and offers.

 They should try and build an emotional connect with customers so that they are
loyal to the brand.

 Companies should also focus on building up the image of their brands through
various promotional activities, celebrity endorsements etc.

 Companies should collect feedback from their customers on a regular basis and
try to improve their product based on the feedback.

 Companies can focus on improving their social image through various CSR
activities.

5.3 CONCLUSION

The growing importance of consumer emotions in purchase decisions has led

researchers to underline the emotions as a driver of purchases. The study was an
attempt to offer marketers the importance of emotions in purchasing of FMCG
products and tried to gain insights into the FMCG purchases. The factors derived
from the study suggest that the relevant emotions which influence the consumer
buying include the factors with a combination of different emotional states. Hence, it
is confirmed from the analysis that consumer decision making involves balancing of
positive and negative emotions.
The major contribution of this research to the body of knowledge is the study of
FMCG purchases which were earlier assumed as only impulsive and was generally

53 | P a g e
associated with a lower level of consumer involvement. But now with the changing
marketing trends and significance of emotions in every purchase, the approach to this
kind of purchase is transforming at a great pace. The impact of emotions in this
segment can be analyzed by the volume of emotional marketing programmes
associated with this product segment. Future research in this area will help
researchers and marketers to tap the resources and to position the brands correctly
thereby ultimately serving the purpose of increasing profits in the near future.

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 BIBLIOGRAPHY

1. Bagozzi, R.P., Gopinath, M. &Nyer, P.U. (1999), “The Role of Emotions in

Marketing”, Journal of the Academy of Marketing Science, 27(2), 184-206.
2. Baldinger, A.L. and Rubinson, J. (1996), “Brand loyalty: the link between
attitude and behavior”, Journal of Advertising Research, 36(6), 22-34.
3. Boehner, K., DePaula, R., Dourish, P., and Sengers, P., 2007. “How emotion is
made and measured”. Int. J. Hum.-Comput. Stud, 65(4), 275-291.
4. Boulding, W., Kalra, A., &Zeithaml, V. A. (1993). A dynamic process model of
service quality: from expectations to behaviorial intentions. Journal of Marketing
Research, 30(1), 7-27.
5. Deshpande, M., Gaddi, A., &Patil, S. R. (2014). “Inference of FDI in Indian
Retail Sector-Some Reflections”. Journal of Entrepreneurship, Business and
Economics, 2(2), 82-97.
6. Hanzaee, KambizHeidarzadeh&BaghiMahvin (2011). Evaluating the Dimensions
of the Role of Product Design (Hedonic and Utilitarian) in Consumer's Post-
Consumption Emotions and Purchase Intention, Middle-East Journal of Scientific
Research, 8 (3), 637-647.
7. Hawkins, Mothersbaugh and Mookherjee, (2010). “Consumer Behavior, Building
Marketing Strategy”,(11th ed): Tata McGraw Hill Education Pvt. Ltd
8. JamwalMohit.,&Soodan Vishal. (2014). Emotional Branding As Tool For
Dissonance Reduction: A Strategy For Competitive Advantage. Abhinav-
International Monthly Refereed Journal of Research in Management &
Technology. 3(1), 25-32.
9. Janssens, W. &DePelsmacker, P. (2005). Emotional or informative, creative or
boring? International Journal of Advertising, 24(3), 373–394.
10. www.wikipedia.org
11.viiiwww.google.com
|Page
 Annexure
Questionnaire
I,Simi Saha, am conducting this survey as part of my project. All information
gathered will be kept highly confidential and will be used for research purpose only.
Your co-operation will be appreciated.
Thank you.

1. Name
2. What age group do you fall into?

o 10-20
o 20-30
o 30-40
o 40 and above

3. What do you do currently?

o Business
o Service
o Student
o Unemployed

4. Are you a brand loyal customer?

o Yes
o No
o Maybe

ix 5.
| P aWhich
g e of the following brands do you prefer?

o Hindustan Unilever
 o ITC
o Nestle
o Britannia
o Cadbury

6. What was the single most important reason that you chose a particular
product?

o Brand image
o Price
o Quality & Quantity
o Other:

7. Do offers and promotional activity influence your purchasing decisions?

o Yes
o No
o Maybe

8. How often is your purchase decision based on celebrity endorsement?

o Always
o Often
o Sometimes
o Rarely
o Never:

9. “Emotions play an important role in purchase decisions” Rate this statement

1st 2st 3st 4st 5s

x|Page
ar ar ar ar tar
Di A
sa gr
 gr ee
ee

10. “Prestige and Social Status plays an important role in purchase decisions”
Rate this statement
1st 2st 3st 4st 5s
ar ar ar ar tar
Di A
sa gr
gr ee
ee

11. Do you think peer group and family influence your purchasing decisions?

o Yes
o No
o Maybe

Thank You.

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